SM Rafique Uddin Ahmed, FCMA                   4 April 2025

Bangladesh, the second largest economy in South Asia, is a developing mixed economy that is transforming from a frontier to an emerging market, with an emphasis on export-led industrialization and a significant agricultural sector.

Bangladesh has a strong economic track record of growth and development, even during periods of heightened global uncertainty, notably the Russia-Ukraine war and the Israel-Gaza conflict. Despite uncertainty and frequent natural disasters, Bangladesh has witnessed robust economic growth and poverty reduction since its independence in 1971.

National Budget 2024-2025

The total national budget of Bangladesh for the fiscal year (FY) 2024-2025 proposed USD 67.54 billion, reflecting increasing expenditures on social services, infrastructure, and development programs, aims for 6.7% GDP growth and a 6% inflation rate, with a deficit of USD 21.60 billion. The budget-to-GDP ratio is equivalent to 14.2 percent of the GDP. 

Tax Revenue Collection 2024-25

Tax Revenue: The government aims to collect USD 45.85 billion in revenue. Its revenue is from income tax, value-added tax (VAT), and corporate taxes, with a target to increase the tax-to-GDP ratio to around 12-14%.

Per Capita Income 2023-24

According to the Bangladesh Bureau of Statistics (BBS), the GDP growth rate in the FY 2023-24 was 5.82 percent, with a per capita gross national income of USD 2,784, the size of GDP in current market prices is USD 459 billion.

Sector wise share to the GDP 2023-24

Agriculture, industry and services are the broad three sectors of GDP. The service sector contributes at 51%, industry sector is estimated at 38% and agriculture sector stood at 11% growth for FY 2023-24.

Industries:

The garment sector is the backbone of Bangladesh's economy, accounting for over 80% of total exports. The country is the second-largest clothing exporter in the world, benefiting from competitive labor costs and a large workforce. Other industries are contributing in the exports such as leather, jute, food processing, shipbuilding, electronics, ceramics, textile, and pharmaceuticals products.

Agriculture:

Agriculture still plays a significant role, contributing 11% share of GDP, employing a large portion of the population. Major crops include rice, jute, tea, and fish.

Service - Remittances:

Remittances from Bangladeshi migration, particularly from the Middle East, constitute a significant source of foreign exchange, significantly contributing to economic stability and household incomes.

There’s a growing emphasis on digitalization, with increasing mobile and internet penetration driving growth in e-commerce, fintech, and tech startups.

Export and Import Earnings 2023-24

In FY 2023-24, Bangladesh's total export earnings amounted to US$51.114 billion, while import payments reached US$72.617 billion, resulting in a trade deficit in the balance of payment (BoP).

Foreign Direct Investment (FDI) 2022:

Bangladesh's net Foreign Direct Investment (FDI) inflows reached $ 3.48 billion in 2022, with notable interest in sectors such as textiles, energy, and ICT.

Public Debt 2024:

Government debt is approximately 42% of the GDP. By the end of June 2024, Bangladesh's total debt, both internal and external, was $153 billion, with each Bangladeshi citizen carrying a debt burden of $847.

Unemployment and Labor 2024:

The Unemployment Rate in Bangladesh is expected to reach 4.50 percent by the end of 2024, according to Trading Economics global macro models and analysts' expectations.

Poverty Rate 2022:

In 2022, the poverty rate in Bangladesh was estimated at 18.7% based on the Household Income and Expenditure Survey (HIES) 2022, with 5.6% of the population living in extreme poverty.

Population Statistics 2024:

In 2024, Bangladesh's population is estimated to be around 173 million, the highest population density in the world. With a slightly higher percentage of women 51% compared to men 49%. Here are some more details on some of the key population statistics of Bangladesh.

1. Youth Population (ages 15-64): Roughly 68%

2. Child Population (ages 0-14): About 26%

3. Elderly Population (65 years and older): Approximately 6%