Bangladesh Economic Indicators 2020: COVID-19 Shock and Resilience Analysis
This report consolidates Bangladesh's major macroeconomic indicators for FY2019-20. Despite the COVID-19 pandemic, Bangladesh maintained positive growth of 3.5% — the strongest economic performance in South Asia. It provides key indicators Korean companies need for investment and market entry decisions, including GDP, inflation, exchange rate, foreign reserves, fiscal balance, current account balance, employment, and poverty rate.
Bangladesh recorded 7–8% high growth from 2016 to 2019 before slowing to 3.5% due to COVID-19, yet demonstrated the highest resilience in South Asia. Healthy fundamentals — GDP of $324B (PPP), foreign reserves of $36B, and public debt at 34% of GDP — lower investment risk. The 2020 data in this report serves as a baseline for understanding subsequent economic direction and structural characteristics.
GDP and Growth Rate: 5-Year Trend
Bangladesh's GDP grew 46% over five years from $222B in 2015 to $324B (PPP) in 2020. While the country recorded 7–8% high growth annually from 2016 to 2019, COVID-19 slowed it to 3.5% in 2020. The 8.2% growth rate in 2019 ranked among the highest in all of Asia, and the 6.9% rebound actually achieved in 2021 proved Bangladesh's economic resilience.
| Fiscal Year | GDP (Nominal) | Growth Rate | GDP per Capita | Key Factors |
|---|---|---|---|---|
| FY2015-16 | $222B | 7.1% | $1,385 | Stable growth, garment export expansion |
| FY2016-17 | $250B | 7.3% | $1,517 | Increased infrastructure investment |
| FY2017-18 | $274B | 7.9% | $1,675 | Near all-time high level |
| FY2018-19 | $303B | 8.2% | $1,856 | Highest growth rate in Asia |
| FY2019-20 | $324B | 3.5% | $1,970 | COVID-19 shock, strongest recovery in Asia |
Monetary and Fiscal Indicators
The Bangladeshi taka (BDT) remained stable at 84.8 against the dollar in 2020, though downward pressure on foreign reserves emerged after COVID-19. The fiscal deficit widened to 5.5% of GDP, but public debt at 34% of GDP remains far below the Asian average of 70%. A tax-to-GDP ratio of 9% is relatively low — expanding tax revenue is the medium-to-long-term fiscal challenge.
External Sector Indicators
The current account deficit widened as garment exports fell (-17%), but rising remittances (+11%) partially offset this. External debt stands at $64B (20% of GDP) and remains manageable. FDI declined to $2.6B but held steady in garments, ICT, and infrastructure. The BB- (S&P) credit rating was maintained at the highest level in South Asia.
| Indicator | 2019 | 2020 | Change | Notes |
|---|---|---|---|---|
| Exports | $40.5B | $33.7B | -17% | Garments directly hit by pandemic |
| Imports | $48.7B | $44.8B | -8% | Reduced raw material demand |
| Current Account | -$4.5B | -$4.7B | Deteriorated | GDP -1.5% |
| Remittances | $16.4B | $18.2B | +11% | Informal channels formalized |
| FDI Inflows | $3.9B | $2.6B | -33% | Pandemic uncertainty |
| Forex Reserves | $32.7B | $36.0B | +10% | Remittance increase effect |