The economy of Bangladesh has been one of the fastest-growing in the world over the last decade, transitioning it from a Least Developed Country (LDC) to a lower-middle-income economy. Driven by a robust export sector and strong domestic demand, its GDP growth frequently exceeded 6-7% annually prior to global disruptions.
The economy is overwhelmingly anchored by two main pillars: the ready-made garment (RMG) industry, which accounts for the vast majority of export earnings, and remittances sent home by millions of Bangladeshi expatriates working in the Middle East, Europe, and North America.
While the cost of living remains low compared to Western standards, inflation and income inequality pose ongoing challenges. Looking ahead, the country is focusing on diversifying its exports, improving infrastructure, and heavily investing in special economic zones (SEZs) to attract foreign direct investment and move up the global value chain.