The new year for Bangladesh started with awful news. According to the IMF and World Bank, India surpassed Bangladesh in terms of GDP per Capita and this year GDP growth of India is 6.5% almost double compared to Bangladesh. The IMF forecast says the GDP growth of this year of Bangladesh is 4.5% which was 5.8% in the previous year.
The current balance of Bangladesh is 481.86 billion dollars and the GDP per Capita of Bangladesh is $2878. However, the GDP of Bangladesh has stuck in the position for the past three years. According to the IMF, in 2022, the total GDP of Bangladesh was 460.56 billion dollars and in the following year that declined to 446,13 billion dollars and the GDP growth also went down.
In recent years, the economy of Bangladesh has been facing a severe economic recession. For example, the inflation rate and government debt are increasing sharply. The foreign reserve of Bangladesh once was 56,24 billion dollars, and now it is down to 24,13 billion dollars. There are several reasons why this is happening with the economy of Bangladesh. This is a threat to Bangladesh because the country once improved a lot in the economic sector.
What major reasons are responsible for the terrible circumstances of the economy of Bangladesh?
The backbone of Bangladesh’s economy is its textile industry. Cheap labors cost and get an extra scope to export Bangladesh’s products throughout the world. The major importers of Bangladeshi textiles are Germany, the USA, the UK and the European Union. In the previous year, the export market value of Bangladesh was 70 billion dollars and the textile industry held 70% of them.
Since Bangladesh is a poor country her economy is boosting so rapidly. That is why, the EU and the USA give them some extra benefits. However, Bangladesh is no longer a poor country she gained the status of a lower middle-class country in the world. Hence, she will not get any extra benefits from them. On the contrary, many big challengers are running behind Bangladesh, such as Vietnam, the Philippines, and India.
In the last July 2024, Bangladesh has witnessed a massive protest throughout the country. The internet was blocked by the former government and curfews were imposed in the country. As a result, the country lost a significant amount of foreign orders. Many big companies shutdowns their offices in Bangladesh and some local businessman were forced to Stop continuing their business here.
Bangladesh is suffering from a severe economic crisis
After the fall of the former government of the People’s Republic of Bangladesh. The current relationship between Bangladesh and India has been changed. There are several unsolved problems between the two of them, such as border killing, the oppression against minorities, and ties with China and Pakistan.
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The current caretaker government of Bangladesh has now suspended all of the import programs from India and searching for new destinations. Brazil, Argentina, China, Pakistan, and Myanmar could be the possible solutions for Bangladesh. On the other hand, India was the only country that, supplied various products to Bangladesh with additional charges. However, the new allies of Bangladesh have failed to provide them. As a result, the country’s economy is facing serious problems.
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The inflation rate is increasing in Bangladesh. The current inflation rate is around 9.6% and the World Bank warned that it could be 156%. Unemployment is also another issue and the total number of unemployed in Bangladesh has been growing over the past years. The existing government of Bangladesh should effort to conquer the circumstance as early as possible. Otherwise, the country will face more and more economic problems.
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