The driving force for a nation today is the economic strength. Bangladesh is striving to become one of the middle income countries by 2021. A country’s overall economic performance is measured the total productive power of the economy in a year. While it is expected that the gross domestic product (GDP) of Bangladesh will continue to grow, the growth rate of GDP will determine the pace of the progress. A higher growth rate will enable Bangladesh to utilize is abundant manpower efficiently.
Once agriculture sector had the major contribution in GDP but as Bangladesh is developing, the contribution from agriculture sector is decreasing. And the contribution of financial sector such as industries, banks and remittance (foreign and domestic) is increasing. In 1986 agriculture sector directly contributes around 46 percent, in 1996 around 35 percent and in 2007-08 around 20.87 percent of the GDP. In 1986 industrial sector contributes around 10 percent, in 1996 around 11 percent and in 2007-08 around 17.77 percent of the GDP. Since 1996 economy has grown 5 to 6 percent per year before it was around 3 percent or less.
After the independence in 1971, everything was controlled by the government and government did not encourage private investment, and most industries were nationalized. In 1975-80 Bangladesh was slowly moving toward liberalization. In 1980-90 it was beginning of liberalization; government gave permission more liberally to private sector investment. In 1990 on-ward it was a period of liberalization and privatization. Financial sector became a driving force for growth since 1990 and domestic money supply also increased after 1990. CLICK HERE FOR FULL ARTICLE.
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