Trends in Major Macroeconomic Indicators: Essay
Bangladesh is a country of more than 140 million people, and it is one of South Asia’s least developed countries. The country has under gone a major shift in its economic philosophy and management in recent years. At Bangladesh’s birth, the country embraced socialism as the economic ideology with a dominant role for the public sector.
But, since the mid-seventies, it undertook a major restructuring towards establishing a market economy with emphasis on private sector-led economic growth.
Bangladesh achieved good economic progress during the 1990s by adopting a series of structural and economic reform measures. The stabilization program reduced inflation as well as fiscal and current accounts deficit and established a healthy …show more content…
The study found that the growth pattern of Bangladesh economy has been relatively strong during the 1990s and 2000s showing considerable improvement over the previous two decades. During last five years Bangladesh has managed to achieve a continued growth of GDP above 6%. The satisfactory growth in export-import, FDI inflow, domestic and national savings, continued flow of remittance, favourable current account balance have stabilized the economy of Bangladesh. However, the country is facing inflationary pressure in last several years despite governments strive to control inflation through combined fiscal, monetary and other supportive policies. Domestic and national savings were 20.31 and 30.21percent of GDP, respectively, in FY 2007- 08. The rates of domestic and national savings have become 19.18 and 29.78 percent of GDP in FY 2009-10 due to the effect of financial crisis. The study also found total FDI inflow in Bangladesh is gradually