CHAPTER 2 GDP, SAVINGS AND INVESTMENT

[Bangladesh has been able to achieve GDP growth at more than 6 percent on an average even during the period of global financial crisis. According to the final estimate of Bangladesh Bureau of Statistics, GDP growth stood at 6.71 percent in FY 2010-11 which was higher than 6.07 percent growth in FY 2010-11. The economy recorded 6.31 percent GDP growth rate in the current fiscal year 2011-12 as per the provisional estimate. In attaining GDP growth, three main sectors of the economy like agriculture, industry and service sector made major contributions. Because of high base effect induced by more than 5 percent growth in agriculture sector during the last two years, the growth of agriculture sector reduced slightly to 2.53 percent in the current fiscal year, which was still satisfactory. In FY 2011-12 at constant prices, share of agriculture, industry and service sectors stood at 19.29 percent, 31.26 percent and 49.45 percent respectively. According to the provisional estimate, on expenditure side, in FY 2011-12 consumption expenditure decreased by 0.09 percentage point of GDP to 80.63 percent of GDP compared to 80.71 percent in FY 2010-11. On the contrary, domestic savings accelerated to 19.37 percent of GDP in this fiscal year from 19.29 percent of GDP in FY 2010-11. However, because of positive growth in remittance inflows, national savings increased to 29.40 percent of GDP in FY 2011-12 from 28.78 percent of GDP a year earlier. Furthermore, investment-GDP ratio stood at 25.45 percent in the fiscal year which was 25.15 percent in FY 2010-11.]

Economic Growth Bangladesh achieved 6.7 percent growth in FY 2010-11even after the global financial crisis. This growth performance was supported by strong rebound in exports and the expansion of manufacturing sector. However, the estimated growth rate slightly decelerated to 6.31 percent in FY 2011-12. According to the provisional estimate of BBS, the economy has posted a growth rate of 6.63 percent in FY 2010-11. According to the projections set out in the Medium Term Macroeconomic Framework (MTMF) the GDP growth will stand at 7.2 percent in FY 2012-13, which is projected to reach 8.3 percent in FY 2015-16. Gross Domestic Product (GDP) at Current Prices The provisional value of GDP at current market prices stands at Tk. 9,14,784 crore in FY 201112, which was 14.82 percent higher than that of the previous year. At current prices, the estimated per capita GDP for FY 2011-12 is TK. 60,350 which has increased by 13.35 percent from the per capita GDP of Tk. 53,238 in FY 2010-11. On the other hand, per capita national income stood at Tk. 66,283 which was Tk. 58,083 a year earlier. In US dollar, per capita GNI and GDP stood at US$ 848 and US$ 772 respectively during this year, compared to US$ 816 and 16

US$ 748 respectively in FY 2010-11. GDP, GNI, per capita GDP and national income during the period from FY 2005-06 to FY 2011-12 are shown in Table 2.1. Table 2.1: GDP, GNI, Per Capita GDP and GNI at Current Market Prices
Item 2005-06 2006-07 2007-08 GDP (In Crore Tk.) 415728 472477 545822 GNI (In Crore Tk.) 442935 507752 594212 Population (In Crore) 13.88 14.06 14.24 Per Capita GDP (In Tk.) 29955 33607 38330 Per Capita GNI (In Tk.) 31915 36116 41728 Per Capita GDP (In US$) 447 487 559 Per Capita GNI (In US$) 476 523 608 Source: Bangladesh Bureau of Statistics (BBS) * Provisional 2008-09 614795 670696 14.42 42628 46504 620 676 2009-10 694324 758928 14.61 47536 51959 687 751 2010-11 796704 869217 14.97 53238 58083 748 816 2011-12* 914786 1004723 15.16 60350 66283 772 848

The GDP at current market prices by sectors are shown in Table 2.2 below: Table 2.2: Gross Domestic Product (GDP) at Current Market Prices
Sector/Sub-sector 1. Agriculture and Forestry a. Crops & horticulture b. Animal farming c. Forest and related services 2. Fishing 3. Mining and Quarrying a. Natural gas & crude petroleum b. Other mineral resources 4. Manufacturing a. Large & medium scale b. Small scale 5. Electricity, Gas & Water Supply a. Electricity b. Gas c. Water 6. Construction 7. Wholesale and Retail Trade 8. Hotel and Restaurants 9. Transport, Storage & Communication a. Land transport b. Water transport c. Air transport d. Support transport services, storage e. Post & telecommunication 10. Financial Intermediations a. Monetary intermediation(Bank) b. Insurance c. Other financial intermediation 11. Real Estate, Renting & other Business Activities 12. Public Administration and Defense 13. Education 2005-06 62223 46118 9682 6423 16317 4643 2568 2075 68923 48974 19949 5392 4455 594 342 32797 56984 2853 43206 32841 3137 500 1260 5467 6684 4995 1430 260 32157 11036 9935 2006-07 70124 52468 10780 6876 17783 5322 2845 2476 81178 57688 23490 5590 4567 651 372 37543 66011 3289 48908 36853 3307 509 1420 6820 7744 5797 1640 307 34929 12743 11776 2007-08 80201 60578 12118 7505 19790 6152 3164 2988 93901 66759 27142 6070 4955 716 399 43854 78220 3889 56907 42857 3621 546 1569 8314 8955 6656 1930 368 38058 14427 13531 2008-09 89426 67247 14002 8177 21806 7091 3590 3501 106445 75610 30835 6542 5311 793 438 50125 88276 4460 64280 48365 3923 589 1758 9645 10245 7613 2201 431 41616 16360 15494 (In Crore Taka) 2009-10 20102011-12* 11 100588 113582 123877 75339 85238 92508 16219 18470 20494 9030 9874 10876 24223 26996 30999 8114 9063 10318 4039 4262 4631 4075 4800 5688 120108 135551 156590 84899 97121 112625 35209 38430 43965 7195 8211 9773 5840 6775 8230 876 908 955 479 529 588 55658 63982 75465 100295 115959 134860 5150 5998 7178 71880 85465 100053 54159 66088 78855 4214 4532 4986 649 722 812 1938 2070 2201 10920 12053 13198 12300 14484 16965 9063 10621 12430 2702 3231 3795 535 632 740 45683 50337 55546 18757 17908 22381 21308 25449 24809

17

Sector/Sub-sector 14. Health and Social Work 15. Community, Social and Personal Srvices Import Duty GDP at Current Market Price Growth Rate ( percent) Source: Bangladesh Bureau of Statistics (BBS)

2005-06

2006-07

2007-08 11819 50200 11733 545822 15.52

2008-09 13391 58364 20871 614795 12.64

2009-10 15142 68466 22853 694324 12.94

9022 10307 38283 43568 15274 15662 415728 472477 12.14 13.65 * Provisional

201011 17582 77876 27931 796704 13.42

2011-12* 20337 91485 31078 914784 14.82

Growth of GDP by Sectors In the estimation of production based GDP, 15 sectors are considered where some sectors are further divided into different sub sectors. All the 15 sectors are grouped into three broad sectors viz- agriculture, industry and service. The broad agriculture sector consists of two sectors namely, (i) agriculture and forestry and (ii) fisheries. Similarly, the broad industry sector comprises (i) mining and quarrying, (ii) manufacturing, (iii) electricity, gas and water supply and (iv) construction sector. The broad service sector includes the collective outputs of the, (i) wholesale and retail trade, (ii) hotels and restaurants, (iii) transport, storage and communication, (iv) financial intermediations, (v) real estate renting and business activities, (vi) public administration and defence, (vii) education, (viii) health and social work and (ix) community, social and personal services. The growth rates of GDP by sectors at constant prices since FY 2005-06 have been shown in Table 2.3 and graph 2.1. Table 2.3: Sectoral Growth Rate of GDP at Constant Prices (Base Year: 1995-96) (In Percentage)
Sector/Sub-sector 1. Agriculture and Forestry a. Crops & horticulture b. Animal farming c. Forest and related services 2. Fishery 3. Mining and Quarrying a. Natural gas & crude petroleum b. Other mineral resources 4. Manufacturing a. Large & medium scale b. Small scale 5. Electricity, Gas & Water Supply a. Electricity b. Gas c. Water 6. Construction 7. Wholesale and Retail Trade 8. Hotel and Restaurants 2005-06 5.23 5.03 6.15 5.18 3.91 9.26 9.52 8.84 10.77 11.41 9.21 7.67 7.45 9.37 7.55 8.31 6.75 7.45 2006-07 4.69 4.43 5.49 5.24 4.07 8.33 8.03 8.80 9.72 9.74 9.69 2.10 1.08 7.37 7.08 7.01 8.04 7.52 2007-08 2008-09 2009-10 2.93 4.10 5.56 2.67 4.02 6.13 2.44 3.48 3.38 5.47 5.69 5.23 4.18 4.16 4.15 8.94 9.84 8.80 8.26 9.15 8.12 10.01 10.90 9.84 7.21 7.26 7.10 6.77 6.68 7.72 6.00 5.68 6.82 7.55 6.68 6.58 6.90 5.91 5.39 8.42 8.39 5.70 6.21 7.58 6.50 5.98 7.77 7.28 7.21 7.51 7.77 6.01 5.87 7.61 2010-11 2011-12* 5.09 1.72 5.65 0.94 3.48 3.39 3.90 4.42 5.25 5.38 4.80 6.25 1.05 2.95 10.43 10.78 9.45 10.94 5.84 6.63 7.33 0.82 8.99 6.51 6.31 7.55 9.76 10.78 7.18 14.11 15.96 3.01 9.82 8.51 5.88 7.60

18

Sector/Sub-sector 2005-06 2006-07 2007-08 2008-09 2009-10 9. Transport, Storage & 7.98 8.03 8.55 8.01 7.69 Communication a. Land transport 4.14 4.18 4.54 5.17 5.98 b. Water transport 1.95 1.73 2.54 2.46 1.01 c. Air transport 5.25 2.01 6.20 7.38 9.13 d. Support transport services, 6.13 8.93 8.45 9.64 8.15 storage e. Post & telecommunication 26.70 23.29 21.64 16.11 12.95 10. Financial Intermediations 8.50 9.18 8.89 8.99 11.64 a. Monetary 8.19 9.34 8.38 9.05 10.47 intermediation(Bank) 9.16 8.21 10.03 8.38 14.88 b. Insurance 10.94 11.62 12.47 11.13 16.10 c. Other financial intermediation 11. Real Estate, Renting & 3.69 3.76 3.75 3.81 3.89 other Business Activities 12. Public Admin and Defense 8.15 8.41 6.21 7.01 8.35 13. Education 9.05 8.96 7.80 8.05 9.24 14. Health and Social Work 7.79 7.64 7.02 7.20 8.10 15. Community, Social and 4.09 4.58 4.62 4.70 4.72 Personal Services At Constant Price GDP Growth 6.63 6.43 6.19 5.74 6.07 Rate ( percent) Source: Bangladesh Bureau of Statistics (BBS) * Provisional

2010-11 2011-12* 5.69 6.58 4.13 1.05 8.26 3.50 10.01 9.64 9.04 11.58 10.08 5.78 1.90 10.61 3.48 9.24 9.52 9.41 9.81 9.86

3.96 9.67 9.36 8.35 4.70 6.71

4.05 6.07 8.61 7.94 4.76 6.32

Graph 2.1: Sectoral GDP Growth at Constant Prices

6.7 6.4 6.2

6.8 6.6 6.3

6.4 6.2 6 5.8 5.6

6.1
6.5 6.47

5.7

1.72

5.4 5.2

Agriculture Sector In FY 2011-12, the provisional growth rate of broad agriculture sector stood at 2.53 percent which was 5.13 percent in FY 2010-11. Of this growth performance, the growth of crops and horticulture sub-sector plunged from 5.04 percent in FY 2010-11 to 1.72 percent this year. 19

Besides, the estimated total production of cereals (rice, wheat and maize) was 351.20 lakh metric tonnes, which by 9.45 lakh metric tonnes compared to 360.65 lakh metric tonnes of the previous year. According to provisional data, this year production of Aus, Amon, Boro and wheat slightly increased to 23.32 lakh metric tonnes (9.32 percent), 187.59 lakh metric tonnes (.05 percent), 9.95 lakh metric tonnes (0.76 percent) and 9.95 lakh metric tonnes (2.36 percent) respectively compared to what stood in the previous year while production maize decreased to 2.36 lakh metric tonnes in FY 2011-12 from the previous years production of 15.52 lakh metric tonnes. The Government has been continuing its effort to ensure supply of sufficient fertilizer and irrigation facilities to the farmers. There has been significant growth in the production of Aus because of uninterrupted fertilizer supply, irrigation facilities and favourable weather. Livestock and forestry sub-sector grew by 3.39 percent and 4.42 percent respectively in FY 2011-12 which were 3.48 and 3.90 percent respectively in the previous fiscal year. Due to the outbreak of Avian Flu during this fiscal year, growth in livestock sub-sector decelerated slightly. The growth rate of the forestry sub-sector showed consistent increase during this period. Because of production environment and high base of last years production, agriculture and forestry sector grew by 1.72 percent in the current fiscal year. According to the estimate of the Directorate of Fisheries (DOF), the total inland and marine catches in FY 2011-12 was 32.62 lakh metric tonnes where inland and marine catches were 26.95 lakh metric tonnes and 5.67 lakh metric tonnes respectively. The fisheries sector grew by 5.38 percent in FY 2011-12 compared to that of 5.25 percent in FY 2010-11. Industry Sector Within the broad industry sector, the provisional growth of mining and quarrying sub-sector sector was recorded 6.25 percent in FY 2011-12 which was 4.8 percent in FY 2010-11. In this sub-sector, natural gas production and crude petroleum grew by 2.95 percent, which was 1.05 percent a year earlier. The growth rate of other mining sub-sectors was about 10 percent in both the fiscal years. According to the provisional estimate of BBS, the Quantum Index of Industrial Production (QIP, Base year: 1988-89=100), the growth rate of the production of large and medium scale manufacturing industries was 10.78 percent in FY 2011-12 which was 10.94 percent in FY201011. The index of production in this sub-sector, especially jute, cotton, ready-made garments, wooden furniture, non-metallic products, basic metallic products, fabricated metallic products increased in the first six months of FY 2011-12 compared to the index of the same period of FY 2010-11. On the other hand, the production index of paper and paper made products remained similar and chemical products, petroleum and food products registered a decreasing trend compared to the same period of the previous fiscal year. Although the eurozone, Bangladeshs main export destination, experienced sluggish growth due to sovereign credit crisis, export of Bangladesh remained in the positive territory. In FY 2011-12, 20

export earnings increased by 4.11 percent compared to those of previous year and in the first half of this year, this sector registered 14.72 percent growth over the growth of the corresponding period. Production of small industries increased by 7.18 percent in FY 2011-12 from the growth of 5.84 percent in FY 2010-11. In FY 2011-12, overall growth rate of manufacturing industry sector stood at 9.76 percent which is slightly higher than 9.45 percent growth of the previous year. The estimated growth rate of power, gas and water sector was 14.11 percent in the current fiscal year, while in the previous year it stood at 6.63 percent. In fact, because of the accelerated growth in power sub-sector, the overall growth of this sector has increased. Due to increasing investment in infrastructure, it was expected that the growth rate in construction sector would increase to 8.51 percent this fiscal year which was 6.51 percent in the last year. Service Sector The growth in almost all the sectors within the broad service sector except financial intermediation, whole sale and retail trade were estimated to grow by 5.88 percent during FY2011-12 compared to 6.31 percent growth of the previous fiscal year. According to the provisional data, the output of the wholesale and retail trade was expected to slide from 7.75 percent of the previous year to 5.88 percent in FY2011-12. Growth in hotel and restaurant subsector was supposed to remain the same while that in transport, storage and communication it was estimated at 6.58 percent for this fiscal year which was 5.69 percent in FY2010-11. On the other hand, air transport and post and telecommunication sub-sector with an estimated growth of 9.24 percent and 10.61 percent respectively contributed significantly to GDP. In the previous year, the growth of these two sub-sectors was estimated at 10.01 and 8.26 percent. The land transport and water transport sub-sector registered higher growth this fiscal year compared to that of the previous fiscal year. During FY 2011-12, financial intermediation showed the prospect of an estimated growth rate of 9.52 percent which was 9.64 percent in FY 2010-11. Among the three sub-sectors of this sector, the growth of two sectors was estimated to be declined. The growth rate in the real estate renting and business activities sector was provisionally estimated at 4.05 percent which was 3.96 percent in FY 2010-11. Among the other services sectors, the growth rate of public administration and defense, education, and health and social services were expected to grow at the rate of 6.07 percent, 8.61 percent and 7.94 percent respectively in FY 2011-12. Moreover, community, social and personal service sector was estimated to grow by 4.76 percent in FY 2011-12, slightly higher than the growth rate of the previous fiscal year. Sectoral Shares in GDP at Constant Prices (Base Year: 1995-96) Table 2.4 represents the sectoral share of GDP at constant prices (Base Year: 1995-96). The table shows that, the share of the agriculture and forestry sector in GDP at constant prices was 14.90 21

percent in the FY 2011-12 which was 15.58 percent in FY2010-11. The contribution of all the three sub-sectors of agriculture and forestry sector decreased during this period. Similarly the contribution of fisheries sub-sector marginally slid down from 4.43 percent in FY2010-11 to 4.39 percent in FY2011-12. The overall contribution of broad agriculture sector dipped to 19.29 in FY 2011-12 which was 19.29 percent in FY2010-11. During FY 2011-12, within the industry sector, GDP growth at constant prices in mining and quarrying sub-sector remained similar to the previous years growth of 1.26 percent. Contribution of manufacturing sector expanded to 19.01 percent of GDP in FY2011-12 compared to 18.42 percent of the previous fiscal year. The share of power, gas and water supply and construction sector also increased during this fiscal year compared to the share recorded a year earlier. On the contrary, the share of broad industry sector reached to 31.26 percent in the current fiscal year, from 30.38 percent of FY 2010-11. Table 2.4: Sectoral Share of GDP (percent) at Constant Prices (Base Year: 1995-96)
Sector/Sub-sector 1. Agriculture and Forestry a. Crops & horticulture b. Animal farming c. Forest and related services 2. Fishing 3. Mining and Quarrying a. Natural gas & crude petroleum b. Other mineral resources 4. Manufacturing a. Large & medium scale b. Small scale 5. Electricity, Gas & Water Supply a. Electricity b. Gas c. Water 6. Construction 7. Wholesale and Retail Trade 8. Hotel and Restaurants 9. Transport, Storage & Communi. a. Land transport b. Water transport c. Air transport d. Support transport services, storage e. Post & telecommunication 10. Financial Intermediations a. Monetary intermediation(Bank) b. Insurance c. Other financial intermediation 11. Real Estate, Renting & other Business Activities (In percentage) 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12* 16.98 16.64 16.18 15.91 15.81 15.58 14.90 12.28 12.00 11.64 11.43 11.42 11.32 10.74 2.92 2.88 2.79 2.73 2.65 2.58 2.50 1.79 1.76 1.75 1.75 1.73 1.69 1.66 4.86 1.16 0.71 0.45 17.08 12.14 4.94 1.65 1.38 0.19 0.08 9.14 14.08 0.69 10.07 6.67 0.89 0.12 0.31 2.08 1.72 1.28 0.37 0.07 7.87 4.73 1.18 0.72 0.46 17.55 12.47 5.08 1.57 1.30 0.19 0.09 9.15 14.24 0.69 10.18 6.50 0.85 0.11 0.32 2.40 1.76 1.31 0.37 0.07 7.64 4.65 1.21 0.74 0.47 17.77 12.63 5.14 1.59 1.31 0.19 0.09 9.13 14.37 0.70 10.44 6.42 0.82 0.11 0.33 2.76 1.81 1.34 0.39 0.07 7.49 4.58 1.25 0.76 0.50 17.90 12.71 5.18 1.59 1.31 0.19 0.09 9.12 14.41 0.71 10.65 6.38 0.79 0.12 0.34 3.02 1.86 1.38 0.40 0.08 7.34 4.49 1.29 0.77 0.51 17.94 12.68 5.26 1.60 1.32 0.20 0.09 9.10 14.36 0.72 10.79 6.36 0.75 0.12 0.35 3.21 1.95 1.44 0.43 0.08 7.18 4.43 1.26 0.73 0.53 18.41 13.12 5.22 1.60 1.33 0.19 0.09 9.09 14.33 0.73 10.70 6.21 0.72 0.12 0.34 3.31 2.01 1.47 0.45 0.09 7.00 4.39 1.26 0.71 0.55 19.01 13.75 5.26 1.72 1.45 0.18 0.09 9.27 14.26 0.74 10.72 6.18 0.69 0.13 0.33 3.40 2.07 1.51 0.46 0.09 6.85

22

Sector/Sub-sector 12. Public Administration and Defense 13. Education 14. Health and Social Work 15. Community, Social and Personal Services GDP
Source: Bangladesh Bureau of Statistics,

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12* 2.71 2.75 2.76 2.78 2.84 2.92 2.91 2.49 2.54 2.58 2.64 2.71 2.78 2.84 2.27 2.29 2.31 2.34 2.38 2.42 2.45 7.25 7.09 7.01 6.93 6.83 6.71 6.61 100.00
* Provisional

100.00

100.00

100.00

100.00

100.00

100.00

In FY 2011-12, the share of overall service sector in GDP is 49.45 percent which stands slightly lower than 49.60 percent in the previous year. Other than the two major broad sectors, the contribution of wholesale and retail trade sub-sector (14.26 percent of GDP) was the highest in FY 2011-12 which was slightly less than that of FY 2010-11. The second largest share within the sector was the transport, storage and communication sub- sector comprising 10.72 percent in FY 2011-12, which was 10.70 percent a year earlier. The next largest share came from real estate, renting and business activities (6.85 percent of GDP), followed by community, social and personal services (6.61percent of DP) sub-sector in FY 2011-12. The structural changes of the share of broad sectors in GDP are represented in the Table 2.5 and graph 2.2. From the table it would be seen that, over the three decades the share of the industry sector in GDP increased gradually and continued to increase in FY 2011-12. On the other hand, the service sector contributed at a similar pace over the period. Table 2.5: Trend of Structural Transformation of Broad Sectoral Shares in GDP and Growth Rate at Constant Prices (Base year: 1995-96)
Share (in percent)
Sector 1980-81 1985-86 1990-91 1995-96 2000-01 2005-06 2009-10 2010-11 2011-12

Agriculture Industry Service Total Agriculture Industry Service GDP (At producer prices)

33.07 17.31 49.62 100.00 3.31 5.13 3.55 3.74

31.15 29.23 25.68 25.03 21.84 19.13 21.04 24.87 26.20 29.03 49.73 49.73 49.45 48.77 49.14 100.00 100.00 100.00 100.00 100.00 Average growth rate (in percent) 3.31 2.23 3.10 3.14 4.94 6.72 4.57 6.98 7.45 9.74 4.10 3.28 3.96 5.53 6.40 3.34 3.24 4.47 5.41 7.02

20.29 29.93 49.78 100.00 5.24 6.49 6.47 6.22

20.01 30.38 49.60 100.00 5.13 8.20 6.22 6.59

19.29 31.26 49.45 100.00 2.53 9.47 6.06 6.39

Source: Bangladesh Bureau of Statistics (BBS)

* Provisional

23

Graph 2.2: Trend of share of three major sectors in the last three decades at Constant Prices
120 100 80 as % 60 40 20
1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Agriculture

Industry

Service

Expenditure Based GDP The GDP based on expenditure is presented in Table 2.6 and the saving and investment situation is presented in Table 2.7. According to the provisional data, on the expenditure side, consumption accounted for 80.63 percent of GDP in the current fiscal year which decreased by 0.08 percent compared to that of the previous year. Increased agricultural output induced domestic demand and the expansion of social safety-net of the Government added up the overall growth in consumption. In Table 2.7 it is evident that, domestic savings and national savings were 20.31 percent and 30.21 percent of GDP respectively in FY 2005-06. In FY 2010-11, domestic savings and national savings stood at 19.29 and 30.21 percent and 28.78 percent of GDP. The provisional estimates of BBS for both category of savings stand at 19.37 percent and 29.40 percent of GDP in FY 2011-12. It indicates that domestic savings and national savings of current fiscal year increased compared to that of the previous year. Due to the slight dip in consumption spending, the national savings increased this fiscal year. On the other hand, growth in domestic savings and remittance is also in the positive territory. Table: 2.6: Expenditure Based Gross Domestic Product at Current Prices (In crore Tk.) 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12* Item 434014 491908 567104 6411311 724282 843310 970407 1. Domestic Demand [(2)+(3)] 331552 376317 434971 491291 554771 643022 737631 2. Consumption 23032 26106 28831 32354 37272 46087 51812 Public 308520 350212 406140 458939 517499 596935 685819 Private 102480 115590 132132 149839 169511 200378 232776 3. Investment 24933 25729 27042 28898 34820 44934 57672 Public 155444 175104 Private 77546 89862 105090 120942 134691 -26070 -32723 -45914 -43803 -45895 -69390 -94464 4. Net Export 407962 459185 521190 597328 678386 774010 875943 5. Gross Domestic Expenditure 24

Item 6. Gross Domestic Product 7. Statistical Discrepancy

2005-06 415728 7766

2006-07 472477 13292

2007-08 54583 24638

2008-09 614795 17467

2009-10 694324 15938

2010-11 796704 22694

2011-12* 914784 38841

Source: Bangladesh Bureau of Statistics

* Provisional

The large-scale investment in infrastructure sector including power and the speedier implementation of Annual Development Programme (ADP) pushed up the level of public investment in FY 2011-12. During this period, gross investment accelerated to 25.45 percent of GDP from 25.15 percent in the previous fiscal year. Of this, gross private investment marginally went down to 19.14 percent of GDP, from 19.51 percent of GDP in FY2010-11. However, public investment increased to 6.30 percent of GDP from 5.64 percent in FY2010-11. Table: 2.7: Savings and Investment (As percent of GDP) Item 1. Domestic Savings Public Private 2. Investment Public Private 3. National Savings
2005-06 20.25 1.41 18.84 24.65 6.00 18.65 27.67 2006-07 20.35 1.41 18.94 24.46 5.45 19.02 28.66 200708 20.31 1.35 18.96 24.21 4.95 19.25 30.21 2008-09 20.09 1.32 18.77 24.37 4.70 19.67 29.57 2009-10 20.10 1.35 18.75 24.41 5.01 19.40 30.02 2010-11 19.29 1.38 17.91 25.15 5.64 19.51 28.78 2011-12 19.73 1.36 18.01 25.45 6.30 19.14 29.40

Source: Bangladesh Bureau of Statistics

* Provisional

Graph 2.3: Trends of Savings and Investment

It is expected that investment would be boosted up through implementation of Power sector Road Map, exploration of new gas deposits needed for meeting up energy demand, importation of LNG, use of renewable energy and implementation of infrastructure related programmes planned under ADP and PPP initiatives. All these combined will help achieve higher trajectory of growth. 25