Bangladesh profile

Demography and Health

Bangladesh is home to about 173.6 million people in 2024, ranking eighth in the world by population, which makes it one of the most populous developing economies. A large population can be a powerful engine for growth if health, education, and job creation keep pace with demographic pressure. In 2023 the birth rate stood at 20.4 per 1,000 people and the death rate at 5.01 per 1,000, signaling continued natural population growth alongside improving health outcomes. Life expectancy at birth is 74.7 years (2023), illustrating progress in public health and living standards, even as under-5 mortality remains elevated at 30.6 per 1,000 live births, highlighting ongoing childhood health and nutrition challenges that require targeted interventions. Net migration was negative in 2024 (-473,362), suggesting outward movement of people which, on one hand, may reduce domestic population growth but, on the other, can generate remittance inflows and skill transfer over time. The country faces a mix of development pressures and opportunities: internet penetration reached 44.5% in 2023, signaling expanding digital access that can support health information, telemedicine, and e-government services, while the physician density remains modest at 0.67 per 1,000 people (2021), indicating continued strain on access to medical care, especially in rural regions. Health financing remains relatively lean, with current health expenditure at 2.39% of GDP in 2022 and domestic general government health expenditure per capita, PPP at about 11.6 international dollars (2022). Poverty affects 18.7% of the population (2022) and undernourishment concerns 11.9% (2022), underscoring that nutrition and inclusive health access remain central development challenges despite overall improvements in life expectancy and health indicators. Taken together, Bangladesh’s demographic momentum offers potential for a demographic dividend if health, nutrition, education, and job opportunities expand in tandem with urbanization, while outward migration and persistent health and nutrition gaps highlight the need for strategic policy focus in social sectors.

Economy

Bangladesh presents a lower-middle-income economy with a current-year dynamic in per-capita measures and macro fundamentals that reflect both rising living standards and structural constraints. GDP per capita is 2,593 current US$ in 2024, while GDP per capita at PPP is 9,647 international US$, indicating substantial purchasing power when adjusted for cost of living but still well below high-income peers. Inflation runs high at 10.5% in 2024, signaling macroeconomic volatility that can erode real incomes and complicate policy planning. The unemployment rate is 4.59% in 2022, suggesting a relatively tight labor market, yet poverty remains a significant concern at 18.7% (2022). The economy demonstrates a modest export base, with exports of goods and services at 10.5% of GDP in 2024, and a somewhat larger import footprint at 16.3% of GDP in 2024, underscoring a trade balance shaped by substantial demand for goods, inputs, and energy from abroad. The current account balance stands at a small surplus of 0.416% of GDP in 2024, while foreign direct investment net inflows are 0.335% of GDP, indicating that foreign capital remains a relatively modest driver of growth and productivity gains. Bangladesh has begun integrating cleaner energy into the mix, with renewable energy accounting for 25% of total final energy consumption in 2021, signaling a policy trajectory toward energy diversification. Per-capita greenhouse gas emissions excluding LULUCF are 1.64 t CO2e in 2023, reflecting a low-emission profile on a per-person basis given development status, though total emissions will grow with economic activity. A notable allocation is military spending at about 4.2 billion US$ in 2023, ranking 47th in the world, which, while important for security, represents a relatively modest share of the economy compared with financing needs for health, education, and infrastructure. Overall, the economy sits at a pivotal point: significant growth potential anchored by a large and youthful population, expanding digital connectivity, and a move toward cleaner energy, but with inflationary pressures, moderate investment, and a reliance on imports that constrain rapid catch-up to more advanced economies.

Trade and Investment

Bangladesh’s external sector reflects a trade profile with gradual diversification needs. Exports of goods and services amount to 10.5% of GDP in 2024, while imports account for 16.3% of GDP in the same year, indicating a trade structure that relies on importing a notable share of intermediate goods and consumer products. Foreign direct investment, net inflows, are 0.335% of GDP in 2024, suggesting that external capital flows remain modest and a potential area for policy emphasis if the nation seeks to accelerate industrial upgrading and export sophistication. The current account balance is a small positive 0.416% of GDP in 2024, providing a degree of resilience against external shocks, but it also points to sensitivity to commodity price swings and global demand fluctuations. The domestic innovation landscape shows some activity with 74 patent applications by residents in 2021, signaling nascent but real capacities for local R&D and technology-enabled product development. A key infrastructure-related indicator—Logistics performance index, quality of trade and transport-related infrastructure—stood at 2.3 in 2022, suggesting meaningful room for improvement in ports, roads, and customs efficiency that, if addressed, could reduce trade costs, boost competitiveness, and attract higher-quality investment. As internet usage stands at 44.5% in 2023, there is clear potential to expand e-commerce, digital services, and cross-border trade, provided connectivity, cybersecurity, and regulatory clarity continue to improve. Taken together, Bangladesh’s trade and investment landscape shows potential for higher growth through export diversification, enhanced logistics, stronger investment promotion, and continued development of a digital economy, even as current indicators point to the need for policy reforms and investment in productive capacity.

Governance and Institutions

The governance indicators for Bangladesh reveal considerable policy and institutional challenges. Political Stability and Absence of Violence/Terrorism score -0.909 (2023), Regulatory Quality -0.914 (2023), and Rule of Law -0.503 (2023) point to vulnerabilities in political stability, the regulatory environment, and the enforcement of laws. Control of Corruption records -1.12 (2023), and Government Effectiveness at -0.697 (2023) further suggest meaningful governance gaps that can affect public service delivery, investment climates, and the overall business environment. With such negative indicators and relatively low regional or global rankings, policy focus on strengthening accountability, anti-corruption measures, and judicial independence would likely support more predictable regulatory outcomes, attract investment, and improve public service performance. While these indicators underscore governance challenges, they also highlight areas where deliberate reforms—transparent procurement, streamlined regulatory processes, and stronger institutions—could yield substantial benefits for growth, equity, and the efficiency of public programs. Overall, addressing governance weaknesses is central to unlocking Bangladesh’s growth potential and improving resilience to external and domestic shocks.

Infrastructure and Technology

Bangladesh’s infrastructure and technology profile shows important progress and notable gaps. Internet penetration stands at 44.5% of the population in 2023, indicating significant digital reach but leaving a large portion of society without online access, which constrains digital inclusion and online service delivery. The Logistics Performance Index for quality of trade and transport-related infrastructure is 2.3 (2022), signaling substantial room for improvement in trade logistics, ports, roads, and customs efficiency that can raise competitiveness and reduce the cost and time of doing business. The health and education systems reveal capacity constraints: physicians density is 0.67 per 1,000 people (2021), suggesting persistent gaps in primary and preventive care access. On the energy front, renewable energy accounts for 25% of total final energy consumption (2021), reflecting a meaningful shift toward cleaner energy sources, though total energy demand remains large and infrastructure for renewable deployment continues to scale. The per-capita greenhouse gas emissions excluding LULUCF are 1.64 t CO2e (2023), indicating relatively low emissions intensity per person, yet emissions will rise with economic activity if energy intensity remains high. The presence of 74 resident patent applications (2021) points to emerging innovation activity, but the scale remains modest relative to more advanced economies. Together, these indicators reveal a country pursuing digital expansion, energy diversification, and modest innovation, while still needing major investments in infrastructure, health capacity, and regulatory environments to sustain higher, more inclusive growth.

Environment and Sustainability

Bangladesh’s environmental and nutrition indicators present a mix of progress and ongoing challenges. The prevalence of undernourishment is 11.9% of the population in 2022, a figure that flags persistent nutrition concerns even as overall development advances and social protection expands. Water resources show relatively low pressure in terms of freshwater withdrawal, with the Level of water stress at 5.72% of available renewable resources in 2021, suggesting limited current water-scarcity pressures but leaving room for growth in water-use efficiency and climate-resilient planning given agricultural and urban demands. Renewable energy contributes 25% of total final energy consumption in 2021, signaling important progress toward a cleaner energy mix and potential for further decarbonization if investments in renewables and grid resilience continue. Total greenhouse gas emissions per capita excluding LULUCF are 1.64 t CO2e in 2023, indicating Bangladesh’s relatively low per-person emissions, which aligns with its development stage, yet the scale of population means total emissions are still a meaningful environmental consideration. Across these dimensions, Bangladesh faces the dual imperative of sustaining improvement in nutrition and living standards while accelerating energy transition and climate resilience—efforts that will hinge on investments in infrastructure, governance, and sustainable agricultural practices to secure long-term environmental and social well-being.