Introduction Essay

1613 WordsJul 13, 20137 Pages
Introduction Bangladesh is one of the fastest growing economic countries among the LDC’s country. According to theInternational Monetary Fund,Bangladesh ranked as the42rd largest economyin the world in 2011 in PPP terms and 57th largest in nominal terms, among theNext ElevenorN-11of Goldman SachsandD-8economies, with a gross domestic product of US$269.3 billion in PPP terms and US$104.9 billion in nominal terms. The economy hasgrown at the rate of 6-7% per annum over the past few years. More than half of the GDP isgenerated by the service sector; while nearly half of Bangladeshis are employed in theagriculture sector. Other goods produced are textiles, jute, fish, vegetables, fruit, leather andleath. An easy way to understand any country's economic scenario is through its Balance of Trade (BOT) and Balance of Payment (BOP) figures. Balance of Trade shows the differencebetween the total amount of incoming and outgoing currencies through import and export.Balance of Payment (BOP) is a summary of economic activities between the residents of acountry and the rest of the world during a given period, usually one year. The main purposeof keeping these records is to inform government authorities about the overall internationaleconomic position of the country in order to assist them in arriving at decisions on monetaryand fiscal policy, on the one hand, and trade and payments policy on the other. Balance of payments statistics are therefore helpful to government authorities charged with maintainingmacroeconomic stability.BOT is a part of BOP, but it is significant for the economy because import and export is oneof the most important economic activities of a nation. Moreover the balance of trade showswhether the external sector of a particular country is doing well or not. Along with BOT,BOP depicts the overall economic balance of a nation and the health of foreign

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