GDP of Bangladesh

GDP of Bangladesh

What is GDP?

GDP (gross domestic product) is the market value of all final goods and services produced within a countries border with the given time period (generally one year). The general GDP calculation formula of expenditure approach is Y=C+I+G+X-M where, C=consumption, I=investment, G=government expenditure, X=export and M=imports.

Example: suppose Bangladesh produces only two products within its border. Those products are 100 piece shirts and 100 tons of potato. So the total GDP of this country is 100 pieces of shirt × market price of every piece of shirt+ 100 tons of potato + market price of every ton of potato. In this way we can calculate a countries total GDP.

Determinants of the gross domestic products are land, labor, capital, technology and natural resources.

Importance of measuring GDP/ GNP in Bangladesh

  1. Standard of living: By calculating GDP/ GNI we can learn about a countries people’s poverty level, the standard of living, per capita income, etc.
  2. Measurement of economic condition: By GDP/ GNI, we can determine whether it is developed, developing, or underdeveloped.
  3. Proper planning: Develop a proper plan and implement those is a broad issue. If we have enough data from a sector, we can make a proper plan for this sector.
  4. Information: We need to know the real economic condition to improve the standard of living, taking development program, and to adjust overall economic management.
  5. Economic policy: As a developing country, Bangladesh needs to take accurate economic policy. To take accurate economic policy this nation must have accurate data about its agriculture, industry, business, transportation, and other sectors.
  6. Budget: The government of BD always makes its budget according to its economic condition. It is easy to set up a budget and implement this if we have enough data.

Current year GDP of Bangladesh

Bangladesh has the 39th largest GDP throughout the world. In 2019-20, its nominal GDP is TK 27,963,782 million while in the year of 2018-19 its GDP was TK 25,424,826 million. In the year 2019-20 total population of Bangladesh is 167.56 million. Bangladesh has a higher GDP than most other countries in the world.

GNI of Bangladesh

Gross National Income (GNI) is the total amount of goods and services produced by a countries citizens at home and abroad within a given time period. The total GNI of Bangladeshi people in 2018-19 is TK 2690921 million and in 2019-20 it is 29304262. Per capita, GNI in 2018-19 was TK 160440 and in 2019-20 it is TK 174888. GDP growth rate at constant market price in 2018-19 and 2019-20 is consequently 8.15 & 5.24. The current year’s GDP growth rate has decreased due to the COVID-19 pandemic.

GDP calculation has three approaches/ method, those are Production approach, Income approach and Expenditure approach. Bangladesh uses production approach and Expenditure approach

Per capita GDP of Bangladeshi people

Per capita domestic gross domestic product means every peoples annual GDP. If we divide the total GDP of a fiscal year with the total population, we get per capita GDP.

Generally, per capita GDP = (Total GDP of a fiscal year)/(total population of that time)

The per capita GDP of Bangladesh in 2018-19 was TK 153578 and in 2019-20 it increases to TK 166888.

By per capita GDP we have knowledge about a countries economic stability and standard of living. World Bank uses per capita GDP to estimate whether the country is developed or developing one. The developed nation has higher per capita GDP and the developing or least developed country has lower per capita GDP. The total population of Bangladesh in 2019 is 167.56 million.

Estimation of GDP in Bangladesh

Bangladesh Bureau of Statistics (BBS) calculates the GDP of Bangladesh every year. They calculate nominal GDP and real GDP every year.

GDP of Bangladesh at current prices 2019-20 (Million Taka)

Sectors2016-172017-182018-192019-20
Agriculture & Forestry2,053,983 2,273,525 2,481,190 2,651,815
Fishing596,270 668,823742,747824,565
Mining & Quarrying341,270 388,837439,638473,352
Manufacturing3,418,2874,041,4434,813,5895,252,692
Electricity, Gas & water supply262,435293,361320,867343,184
Construction1,461,0731,698,5501,964,0302,241,668
Wholesale & retail2,439,5812,798,2253,227,2233,602,839
Hotel & Restaurants193,182221,228252,335284,491
Transportation, storage & communication1,870,7552,046,3002,260,2502,487,678
Financial Intermediations732,046837,283942,0241,011,297
Real state, renting & business1,445,3921,664,189 1,904,8662,124,984
Public administration & defense784,407902,277989,5741,117,992
Education568,555 644,778730,905818,936
Health & social work389,867 440,642520,063587,742
Community & personal services2,142,127 2,363,7792,609,6092,878,271
Tax less subsidy1,058,9231,221,5551,225,9151,262,275
GDP at current price19,758,15422,504,79325,424,82627,963,782

GDP of Bangladesh at constant year price 2019-20 (Million Taka)

Sectors2016-172017-182018-192019-20 (p)
Agriculture & Forestry1,011,7251,046,8801,079,9071,102,318
Fishing328,786349,736371,462394,131
Mining & Quarrying163,302174,737185,011193,112
Manufacturing1,977,6532,242,7012,561,1792,710,672
Electricity, Gas & water supply138,196150,892165,347 175,527
Construction669,508735,954811,387884,914
Wholesale & retail1,274,1661,369,139 1,480,584 1,554,955
Hotel & Restaurants68,198 73,15978,696 83,782
Transportation, storage & communication1,024,633 1,092,084 1,170,5571,243,003
Financial Intermediations314,127338,934363,942 380,161
Real state, renting & business589,973619,357 651,728683,312
Public administration & defense336,152364,628387,951 411,307
Education225,465 241,270259,759 275,829
Health & social work168,040 179,841201,050221,065
Community & personal services806,529835,977867,061 898,368
Tax less subsidy382,521 409,087422,314424,941
GDP at current price9,478,97510,224,37511,057,93611,637,396

BBS uses the Production method and Expenditure method to calculate the overall GDP of this country. To calculate GDP with the production method, they divide the whole economy into three sectors and fifteen (15) sub-sector. Those three sectors are Agriculture, industry and service. The total GDP share of those sectors is Agriculture 13.02%, Industry 31.13% and service 55.85%. Those sectors and sub-sectors are described below-

Agriculture

The total GDP contribution of agriculture in 2018-19 was TK 3,223,938 million and in 2019-20 it is TK 3,476,381 million. Agriculture has two subsector-

Agriculture and Forestry

Agriculture is the most important section of gross domestic product. It is very difficult to calculate this sector. Total GDP of 2018-19 was 2,481,190 and 2019-20 it is 2,651,815. This sector has three subsectors.

 Gross Domestic Product of Bangladesh at Current Prices, 2016-17 to 2019-20(p)

Crops and Horticulture

This sector calculates the wholesale price of all produced vegetables and crops. In the 2019-20 fiscal year, produced vegetables and crops were worth TK 1,830,185 million.

 Livestock

BBS also calculates the GDP of this sector with the current year price. In the year 2019-20 total livestock was worth TK 466,733 million.

Forestry

In Bangladesh, this sector has also lack of proper data. In 2019-20 total GDP of this sector was TK 354,897 million.

Fishing

Fishes abound in this country. In GDP calculation, we calculate both sources of fishes, internal source and seas. In 2019-20 total amount of this sector is TK 824,565 million.

Industry

The industry is the most important sector of a countries development. The total GDP share of this sector of Bangladesh is TK 7,538,124 million in 2018-19 and TK 8,310,896 million in 2019-20.

Minerals & Quarrying

It is a sub-sector of the industry. Bangladesh is a country of silent minerals. Its main mineral is natural gas. In 2019-20, the total earning of this sector was TK 473,352 million. It has two sub-sector,

(a) Natural Gas and Crude Petroleum (TK 139,743 million in 2019-20)

(b) Other mining and Coal (TK 333,609 million In 2019-20)

Manufacturing

Most exporting product of Bangladesh is ready-made garments. In the year 2019-20 total GDP contribution of this sector is TK 5,252,692 million. The GDP contribution of large, medium scale and small scale industry was consequently TK 4,298,534 million and TK 954,158 million.

Electricity, Gas and Water Resources

GDP of this sector calculated by services provided to this country. The government of BD privatize some parts of this sector’s important sector. The total GDP of this sector in 2019-20 was TK 343,184 million. The GDP contribution of Electricity, Gas and water separately are consequently TK 270,168 Million, TK 55,280 Million and TK 17,735 Million.

Construction

GDP of this sector calculated from the data of personal infrastructure and government.  In 2019-20, total GDP of this sector was TK 2,241,668 million.

Service

It is the largest sector by the GDP contribution of Bangladesh. In 2019-20, its GDP contribution is TK 14,914,231 million.

GDP of service sector of Bangladesh

WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES, MOTORCYCLES AND PERSONAL AND HOUSEHOLD GOODS

In 2019-20, the total amount of GDP of the wholesale department is TK 3,602,839 million.

Hotel and Restaurant

BBS calculate this sectors total GDP with the produced goods and services and the total GDP of this sector was TK 284,491 million in 2019-20.

Transport, Storage & Communication

This is one of the biggest sectors of GDP calculation of Bangladesh. This sector is dominated by the private sector. This sector includes road transport, air transport, water transport, currier agencies, storage institutions, postal and Telecommunications. The total GDP of this sector Is TK 2,487,678 million by the year 2019-20.

Financial Intermediations

GDP of this sector calculated by the total price of produced services. This sector includes banks, insurance and other financial institutions. In the year 2019-20 total GDP contribution of this sector was TK 1,011,297 million.

Real state, Renting and other Business activities

This sector includes the total GDP of earning by selling those products and services and a total GDP of this sector in 2019-20 is TK 2,124,984 million.

 Public Administration and Defence

This sector calculates GDP by total spending in this sector. In 2019-20, the total spending of this sector was TK 1,117,992 million.

 Education

It is one of the most important spending sectors of the Bangladeshi government. The education sector also calculates total GDP by its spending and total GDP in 2019-20 was TK 818,936 million.

 Health and social services

This sector also uses expenditure approach. In 2019-20, the total GDP expenditure of this sector was TK 587,742 million.

Community, social and Personal services

This sector also calculates its GDP by expenditure method. The total expenditure of this sector in 2019-20 was TK 2,878,271 million.

Expenditure based GDP

GDP of expenditure category at current price level 2019-20(p)

 2016-17
(million taka)
2017-18
(million taka)
2018-19
(million taka)
2019-20
(million taka)
Domestic demand (1)+(2)20,781,861 24,395,22427,089,356 29,766,601
Consumption (1) 14,753,55917,365,869 19,062,66120,886,722
Investment (2)6,028,3027,029,355 8,026,6958,879,880
Resource balance (3)-(4)-1,033,704-1,945,084 --1,554,170-1,678,083
Exports (3)2,970,857 3,330,9253,895,9093,742,021
Imports (4)4,004,561 5,276,0095,450,0795,420,104
Gross Domestic Exp. at m.p.19,748,15722,450,14025,535,18628,088,518
Gross Domestic Product at m.p.(5)19,758,15422,504,793 25,424,82627,963,782
Statistical Discrepancy (6)9,997 54,653-110,360-124,736
Net factor income from abroad (7)849,010 1,026,283 1,136,0961,340,480
Gross National Income at m.p. (8)=(5)+(7)20,607,164 23,531,07626,560,92229,304,262
Net current transfers from abroad (9)3,5304,9502,1482,111
Gross Disposible National Income (10)=(8)+(9)20,610,694 23,536,02626,563,07029,306,372
Gross Domestic saving (11)=(5)-(1)5,004,5955,138,9246,362,1657,077,060
Gross National saving (12)=(10)-(1)5,857,135 6,170,1577,500,409 8,419,651
Current Account Balance (13)=(12)-(2)-(6)-181,164 -913,851-415,926 -335,493

GDP of expenditure category at constant price level 2019-20(p)

 2016-17
(million taka)
2017-18
(million taka)
2018-19
(million taka)
2019-20
(million taka)
Domestic demand (1)+(2)9,605,348 10,670,032 11,273,98411,843,728
Consumption (1) 6,488,464 7,225,8207,539,024 7,858,047
Investment (2)3,116,884 3,444,2123,734,9603,985,681
Resource balance (3)-(4)-250,491 -590,269-376,930-379,460
Exports (3)1,437,9221,554,2261,724,2251,577,074
Imports (4)1,688,4132,144,495 2,101,1551,956,534
Gross Domestic Exp. at m.p.9,354,857 10,079,76310,897,05411,464,268
Gross Domestic Product at m.p.(5)9,478,97510,224,375 11,057,93611,637,396
Statistical Discrepancy (6)124,118144,612160,882 173,128
Net factor income from abroad (7)407,313466,261 494,118557,853
Gross National Income at m.p. (8)=(5)+(7)9,886,28810,690,63611,552,05412,195,249
Net current transfers from abroad (9)1,694 2,249934878
Gross Disposible National Income (10)=(8)+(9)9,887,98110,692,885 11,552,98912,196,128
GDP Deflator 208.44220.11229.92240.29

Factors not included in GDP

  • Gains or losses from capitals
  • Intermediate goods or services
  • Goods and services from free of charge
  • No consideration of previous production and transaction
  • Interest on public debt
  • Illegal activities

Problems of measuring GDP/ GNP in Bangladesh

You have to face problems in measuring GDP in every methods.

  1. Self-employed: In BD, some people are self-employed or farmers work on their own land. They consume their own product. It is not possible to calculate the price of those.
  2. Product exchange system: The product exchange system is available in the villages of Bangladesh. The value of those exchangeable items is not the same. It is hard to identify those.
  3. Double counting problem: It is a common problem in every country. Sometimes, the value of a product can be calculated on the primary level and final goods. The calculation of double-time of a product creates the double-counting problem.
  4. House ownership: If the owner stays in his own house, he needn’t pay any rent. It is very hard to determine the rent of all houses.
  5. Wages in terms of product prices: In Bangladesh, we not only pay wages to laborers with money but also pay with products. It is tough to know the original value of those products.
  6. Devaluation of women’s work: most of the Bangladeshi women works as a housewife. They don’t get any wages for their work. Devaluation of women works to decrease the total GDP.
  7. Statistical error: In Bangladesh, statistical error is common. Here you may experience complexity in data collection, lack of training, lack of skilled data collectors, lack of cooperation between data-collecting institutions etc.
  8. Occupation: In Bangladesh, many people perform business with a job. It is hard to find accurate income for those people.
  9. Data manipulation: Many people of our country don’t want to dispose of their accurate income. They want to hoax income tax. So, they provide false information.

Solutions to these problems

  1. Develop a statistical system.
  2. Avoid double counting problem
  3. Make a stable price level
  4. Specializations of occupations
  5. Provide accurate data on international trade
  6. Stop corruption, speed money system.

References

DATA source BBS

Summary
GDP of Bangladesh
Article Name
GDP of Bangladesh
Description
Bangladesh has the 39th largest GDP throughout the world. In 2019-20, its nominal GDP is TK 27,963,782 million. The per capita GDP of Bangladesh in 2019-20 is TK 166,888.
Author
Publisher Name
Oikosmist
Publisher Logo

You may also like...

19 Responses

  1. hindi movie says:

    Howdy! I know this is kinda off topic but I was wondering if you knew where I could get a captcha plugin for my comment form? Sophie Patrice Schouten

  2. bedava says:

    Thanks again for the article. Thanks Again. Keep writing. Dalenna Willard Glynda

  3. mp3 says:

    A person necessarily lend a hand to make critically articles I would state. This is the first time I frequented your web page and up to now? I amazed with the research you made to make this particular publish amazing. Fantastic activity! Pam Boyce Beltran

  4. diziler says:

    I have read so many content on the topic of the blogger lovers but this post is really a fastidious post, keep it up. Sande Lorin Antonin

  5. turkce says:

    Say, you got a nice blog post. Really looking forward to read more. Really Great. Farand Hewett Janus

  6. turkce says:

    I have read so many posts about the blogger lovers except this post is actually a pleasant article, keep it up. Milicent Abel Aric

  7. turkce says:

    Aqua Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.2 Betti Rowen Bigler

  8. turkce says:

    You have brought up a very great points , thankyou for the post. Meryl Broddy Eugine

  9. turkce says:

    Did you ever make a vegan version of this? I imagine substituting the eggs with a banana and a flex egg might do just fine. Will try this at the weekend anyway, looks delish! Sosanna Myles Modla

  10. turkce says:

    Incredible points. Great arguments. Keep up the great spirit. Elbertine Fredric Julian Kissiah Ennis Effie

  11. turkce says:

    I constantly emailed this webpage post page to all my contacts, for the reason that if like to read it then my friends will too. Waly Garik Colwell Lauree Herold Zingg

  12. turkce says:

    It is truly a nice and helpful piece of info. I am happy that you shared this helpful information with us. Please keep us informed like this. Thank you for sharing. Ddene Fairfax Piselli

  13. turkce says:

    Quality articles, I am waiting for your next article. keep working Ashlen Alard Doyle

  14. erotik says:

    A motivating discussion is definitely worth comment. Lettie Freeman Marita

  15. erotik says:

    I could not refrain from commenting. Well written! Odelia Gardener Eadie

  16. erotik says:

    Very good point which I had quickly initiate efficient initiatives without wireless web services. Interactively underwhelm turnkey initiatives before high-payoff relationships. Holisticly restore superior interfaces before flexible technology. Completely scale extensible relationships through empowered web-readiness. Catina Kerwin Moises

  17. turkce says:

    I am truly glad to glance at this webpage posts which contains lots of valuable data, thanks for providing such information. Dacie Hogan Durante Sheelagh Clarke Malamut

  18. erotik says:

    For hottest news you have to pay a quick visit internet and on world-wide-web I found this web page as a best web site for hottest updates.| Betteanne Archibald Griggs

  19. SUPERSLOT says:

    I really enjoy the article.Much thanks again. Will read on…

Leave a Reply

Your email address will not be published. Required fields are marked *