|History||Recorded history traceable to the 4th century B.C. with clear evidence of flourishing civilization consisting of cities, palaces, temples, forts, seats of learning and monasteries.|
|1200||Advent of Islam, enjoying periods of prosperity under Muslim rule till 1757.|
|1757||Beginning of British colonial rule.|
|1947||British colonial rule comes to an end. Present Bangladesh territory (East Bengal) became East Pakistan as part of Pakistan.|
Emergence of the sovereign state of Bangladesh through a 9-month long war of liberation.
- Steady economic growth of 4-5% annually, relatively low inflation, and fairly stable domestic debt, interest, and exchange rates.
- This growth performance, coupled with an impressive decline in the population growth rate from 2.5% in the 1980s to 1.7% in 1990-2004, has led to a doubling of annual per capita GDP growth, from 1.6% in the 1980s to 3.3% in 1990-2004.
- It increased gross primary enrollment from 72% in 1980 to 98% in 2001 and has already attained the MDG of eliminating gender disparity in primary and secondary enrollment.
- With the sharp decline in infant mortality from 145 to 46 per 1,000 live births between 1970 and 2003, and in child mortality from 239 to 69 per 1,000, Bangladesh is set to achieve the targeted two-thirds reduction from 1990 levels by 2015. Food security has improved markedly, even for the very poor.
- There have also been steady gains in income poverty: the share of the population in poverty declined from 59% in 1990 to 50% in 2000, with rural areas accounting for nearly four-fifths of this decline.
- Bangladesh’s actual values for fertility, infant and child mortality, contraceptive prevalence, and crude birth and death rates are much better than would be predicted for a country at its income level.”
- Economic growth has averaged 6 percent in the past four years.
- Reform of the foreign exchange regime has made possible sustained growth in exports and remittances, helped the economy to weather external shocks from rising.
- Oil prices and the end of the Multi-Fiber Agreement quotas, and facilitated the buildup of international reserves.
- Continued trade reform and more integration with global and regional economies are reflected in the increase of international trade from 28 percent of GDP in FY2000 to 38 percent of GDP in FY06.
- Monetary tightening has helped contain inflationary pressures from rising food and transport prices.
- Fiscal sustainability has been protected by limiting domestic financing of the budget deficit to 2 percent of GDP, and central government debt has been contained at 47 percent of GDP.
- Rate of inflation was (12 months’ point to point) 7.61% in May 2006
- FY 06 saw rise in inflation on the back of strong growth in money supply, credit, weaker taka, increased oil and commodities price.
- However, oil price feed through has been limited and government administers prices of other energy sources such as natural gas and electricity as well.
- Foreign exchange transactions are guided by Foreign Exchange Regulation (FER) Act, 1947 and Guidelines for Foreign Exchange Transactions (Vol I & II), 1996
- Current Account was made convertible in March 1994 in Bangladesh. Capital Account payments are only subject to Central Bank approval.
- Bangladesh Taka exchange rate against USD was made floating from May 31, 2003. Market forces now determine the USD BDT exchange rate.
- FX reserve grew at an CAGR of 21.67% since FY 2002
- FX Reserve at the end of FY 2006 was USD 3.48 Bn
- Present reserve is 2.86 month’s import
- Reserve growth is backed by strong worker remittance and export figures.
- 75% of exports in the garment/knitwear categoryExport PerformanceBangladesh’s Export in FY 2006 was estimated at a record high of 10.53 billion (year to year growth of 21.63%.Financing of National Budget
- Actual Fiscal deficit in FY06 estimated at 3.9% of GDP was lower than the budgeted deficit for the year (Source: ADB Quarterly Economic Update, June 2006)
- The Financing of FY06 deficit was made 51% from domestic & 49 foreign sources
- Bangladesh funds entire current expenditure from own revenue sources and funds part of the development expenditures by borrowing from both domestic and external sources.
- Overall borrowing levels and external borrowing levels are not high. Total external debt at the end of FY 05 was approximately USD 18.5 bn (almost 1/3 of GDP).
- Bangladesh has never defaulted any of its foreign debt repayment obligations till date.
- Source: http://www.banglaembassy.com.bh/CountryBrief.htm