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Bangladesh Market Brief 2020: Economy, Industry and Consumer Outlook

Bangladesh Market Brief 2020

Bangladesh is a South Asian growth market with 170 million people (8th largest population in the world), GDP of USD324B in PPP terms, and average growth above 6%. Even during 2020 and the COVID-19 crisis, it preserved positive growth of 3.5%. Its economy is anchored by garment exports, remittances, and agriculture, while Korean firms see entry opportunities in infrastructure, consumer goods, ICT, and energy.

170M
Population
8th in the world
USD324B
GDP
in PPP terms
3.5%
Growth
FY2020 (COVID period)
USD1,970
GDP per Capita
nominal

Economic Structure and Industry Weight

Bangladesh is composed of services (52%), industry (31%), and agriculture (13%). In the industrial sector, garments (RMG) account for 12% of GDP and 83% of total exports, indicating concentration risk. The government is pursuing industrial diversification as a core policy goal.

GDP Composition by Sector
SectorGDP ShareEmployment ShareGrowthKey Sub-sectors
Services52%40%4.2%Finance, telecom, distribution
Industry31%20%3.0%Garments, construction, power
Agriculture13%40%3.1%Rice, fisheries, livestock
Construction7%6%5.5%Infrastructure, housing

Consumer Market and Middle Class

As urban middle-class households grow to about 35 million, the consumer market is expanding at roughly 8% annually. Korean brands enjoy higher awareness through Hallyu effects, creating room for premium positioning in K-beauty, food, and electronics.

Consumer Market Size
Total marketUSD180B (2020)
Urban share40%
Growth8% annually
Middle class35M people
Distribution Channels
Traditional market65%
Modern retail20%
Online15%
Fastest growthE-commerce +30%

Business Environment

In the 2020 Doing Business report, Bangladesh ranked 168th out of 190 economies. Power access, construction permits, tax payment, and contract enforcement were among the weakest areas, but reforms are advancing through one-stop service programs such as BIDA and BEZA.

01
Strengths
Low labor cost at USD113 per month, young population (median age 27), strong near- and mid-term growth above 6%, and high receptivity to Korean culture
02
Weaknesses
Infrastructure gaps, bureaucratic complexity, corruption concerns (CPI rank 147), and peak-hour power shortages reaching about 20%
03
Opportunities
LDC graduation in 2026, potential CEPA progress, 100+ economic zones, and USD40B infrastructure investment pipeline
04
Threats
Political uncertainty, exchange-rate volatility, climate shocks, and competition from China and India
Market Scan
170M people and USD324B PPP baseline
Entry Sectors
Infrastructure, consumer goods, ICT
Partners
KOTRA, BEZA, BIDA
Commercialization
Export, investment, technology transfer
Bangladesh Trade Statistics 2020Export-import structure and trade data
Investment Guide 2020Entry procedures, incentives, and key risks
Market BriefEconomic OutlookIndustry StructureConsumer Market2020
Bangladesh Market Brief 2020: Economy, Industry and Consumer Outlook | Dhaka Trade Portal