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Bangladesh
Europeans began to set up trading posts in the area of Bangladesh in
the 16th century; eventually the British came to dominate the region
and it became part of British India. In 1947, West Pakistan and East
Bengal (both primarily Muslim) separated from India (largely Hindu)
and jointly became the new country of Pakistan. East Bengal became
East Pakistan in 1955, but the awkward arrangement of a two-part
country with its territorial units separated by 1,600 km left the
Bengalis marginalized and dissatisfied. East Pakistan seceded from
its union with West Pakistan in 1971 and was renamed Bangladesh.
About a third of this extremely poor country floods annually during
the monsoon rainy season, hampering economic development.
Capital City: Dhaka (+6 GMT)
Chief of State: President Iajuddin AHMED
Currency: Taka
Main Cities: Chittagong, Khulna, Rajshahi
Major Languages: Bangla
Calling Code: 880
Voltage: 220V
Stock Exchanges: Dhaka Stock Exchange
Primary Religions: Muslim
Main Airports
Chittagong (CGP) (MA Hannan International Airport), Dhaka
International (DAC) (Zia International), Syhlet (ZYL) (Osmani
International Airport)
U.S. Embassy
Madani Avenue, Baridhara, Dhaka 1212, Bangladesh
tel: (880) (2) 885-5500
Statistics
- GDP: purchasing power parity:
- $304.3 billion (2005 est.)
- GDP - real growth rate:
- 5.7% (2005 est.)
- GDP - per capita: purchasing power parity:
- 2,100 (2005 est.)
- Inflation rate (consumer prices):
- 7% (2005 est.)
- Labor force:
- 66.6 million
note: extensive export of labor to Saudi Arabia, Kuwait,
UAE, Oman, Qatar, and Malaysia; workers' remittances estimated
at $1.71 billion in 1998-99 (2005 est.)
- Exports:
- $9.372 billion (2005 est.)
- Exports - partners:
- US 23.6%, Germany 13.5%, UK 9.4%, France 6.4% (2005)
- Imports:
- $12.97 billion (2005 est.)
- Imports - partners:
- India 14.1%, China 13.5%, Kuwait 8.5%, Singapore 6.2%, Japan
4.1%, Hong Kong 4.1% (2005)
- Population:
- 147,365,352 (July 2006 est.)
- Population growth rate:
- 2.09% (2006 est.)
- Population Below Poverty Line:
- 45% (2004 est.)
- Major Industries:
- cotton textiles, jute, garments, tea processing, paper
newsprint, cement, chemical fertilizer, light engineering, sugar
- Employing Workers: 75*
- Registering Property: 167*
- Enforcing Contracts: 174*
- Closing a Business: 93*
- *2006 World Bank rank out of 175 countries
- Starting a Business
The table below shows the number of steps and the amount of
time needed to start a business, on average
| Indicator |
Bangladesh |
Region |
| Procedures (number) |
8 |
7.9 |
| Time (days) |
37 |
32.5 |
Bangladesh Risk Assessment
Country Rating
Rating: C
A very uncertain
political and economic outlook and a business environment with many
troublesome weaknesses can have a significant impact on corporate
payment behaviour. Corporate default probability is high.
Risk Assessment
In fiscal 2006/07 starting 1 July,
economic growth, the disturbances linked to electoral-period
instability and the institution of a state of emergency early last
year had little effect on GDP growth, up 6.5 per cent. Beyond the
human toll, the cyclone in November 2007 should, however, have a
significant impact on economic growth in 2007/08, which should drop
below six per cent due to the damage done in the main rice
production region. In conjunction with rising prices for farm
products, the inflationary pressures resulting from the cyclone
should affect household consumption. Grain imports, reconstruction
spending, and higher subsidies of petrol prices should, moreover,
undermine public finances.
The difficulties faced in recent months
by textiles, a sector that generates 75 per cent of exports,
compound the effects of the natural catastrophe. Recurrent social
unrest, a severe lack of infrastructure and skilled labour, along
with a relatively difficult business environment for private
companies explain why some foreign buyers have sought alternative
sources of supply. The sector nonetheless continues to enjoy assets
that bolster its competitiveness, notably a low-cost, hardworking
labour force.
Political uncertainties have also
contributed to the low investment rate. Instituting a state of
emergency in January 2007 and postponing the elections to end 2008
at the earliest undeniably enabled the country to overcome the
political gridlock. The challenge for government officials now is to
restore democratic institutions without triggering a resumption of
violence, particularly between the two traditional parties, the
Bangladesh Nationalist Party and the Awami League.
STRENGTHS
- The clothing manufacturing
sector has contributed to the country's development since the
early nineties.
- Transfers from emigrant workers,
employed mainly in the Gulf region, and international aid, allow
the country to compensate for the trade imbalance.
- The country has moderate foreign
debt.
WEAKNESSES
- Bangladesh is very vulnerable to
natural catastrophes.
- The economy is very sensitive to
how world competition develops in the textiles sector.
- The business climate has major
shortcomings.
- A lack of infrastructure
(particularly electricity) has impeded growth.
- The fiscal deficit remains
large.
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