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Economic growth

Bangladesh's Resilient Economy: A Comparative Study of Countries After Revolution

Strategic Insights

— 2 min read

In the aftermath of the July Uprising, Bangladesh's economy faced significant challenges, including a drop in foreign direct investment (FDI) and projected low GDP growth. However, thanks to sound economic management by Dr Salehuddin Ahmed and Dr Ahsan Mansur, the country has managed to maintain a relatively stable economy. A recent comparison by the Finance Ministry highlights Bangladesh's resilience, comparing it with countries that experienced revolutions or uprisings in the last 50 years.

Key Takeaways:

  • Bangladesh's FDI dropped to a 5-year-low in the last 12 months, while the World Bank projected GDP growth of 2.5% this year, the lowest in over 30 years [1].
  • The country's economy was balanced by a record-breaking year for inward remittances and strong exports [2].
  • Dr Salehuddin Ahmed and Dr Ahsan Mansur provided sound economic management to mitigate the effects of the July Uprising [3].
  • The Finance Ministry compared Bangladesh's performance post-uprising with Sri Lanka (after the Mahinda Rajapakse government fell in 2022), Indonesia (after the May 1998 riots), Iran (after the 1979 Islamic Revolution), and Russia (after the 1991 fall of communism).
  • Three out of the four countries experienced economic contractions in the year following their revolution/uprising [4].
  • Bangladesh's economy avoided a contraction, slowing down its growth rate from 6.4% in the previous two years to 4.2% [5].
  • Indonesia, which experienced a similar economic situation prior to its 1998 uprising, suffered a catastrophic contraction of 13.1% the following year [6].

Statistics:

  • FDI in Bangladesh dropped to a 5-year-low in the last 12 months.
  • Africa's World Bank GDP growth projection for 2024 is 2.5% [1].
  • Bangladesh's inward remittances reached a record-breaking high in the last 12 months.
  • Exports also performed strongly in the last 12 months.
  • The four countries compared in the Finance Ministry's handout suffered the following economic contractions:

+ Sri Lanka: 4.8% in the year following the Mahinda Rajapakse government's fall in 2022.

+ Indonesia: -13.1% in the year after the May 1998 riots.

+ Iran: -6.8% in the year following the 1979 Islamic Revolution.

+ Russia: -8.7% in the year after the 1991 fall of communism.

  • Bangladesh's economy slowed down its growth rate from 6.4% in the previous two years to 4.2% in the year following the July Uprising.

Sources:

  • [1] World Bank, GDP Growth Projection for 2024.
  • [2] Finance Ministry of Bangladesh, Inward Remittances and Exports Data.
  • [3] Bangladesh Bank, Statement by Dr Ahsan Mansur.
  • [4] Finance Ministry of Bangladesh, Handout Comparing Bangladesh's Performance.
  • [5] World Bank, Bangladesh GDP Growth Data.
  • [6] Indonesia Central Bureau of Statistics, GDP Growth Data.

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