Overview
With over 160 million people, a young and cheap labor force and strategic location between India and China -- two of largest engines of global economic development over the past decade -- Bangladesh has strong prospects for continued economic growth for the foreseeable future. The extent of Bangladesh's growth will largely depend on its leaders' ability to improve economic and diplomatic ties among its neighbors. Completion of a highly-anticipated Indo-Bangladeshi free-trade agreement will help spur Bangladesh's already surging garment, pharmaceutical and software industries. Bangladesh has also begun to construct large infrastructure projects, such as electrical power plants, to address domestic and regional energy needs. In addition, with 50% of its workforce in the service sector, Bangladesh has the potential to become an offshore centre for outsourcing, which would help diversify its economy.
Stock Market:
Bangladesh holds two separate stock exchanges, the Dhaka Stock Exchange (DSE, established in 1954) and the Chittagong Stock Exchange (CSE, established in 1995). The DSE has a total of 232 listed companies with a market capitalization of US$ 28 billion and a PE ratio of 12.04. The CSE is located in southeastern Bangladesh, hosts 237 companies, has a market capitalization of over US$ 4 billion and a PE ratio of 12.06 (Q4, 2011).
Forecast Summary: | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |
Real GDP Growth (%): | 6.7 | 6.3 | 6.1 | 6.3 | 6.4 | 6.5 |
*Source: The Economist |