MACROECONOMIC INDICATORS https://www.facebook.com/md.sajib.1612147

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Jatiya Kabi Kazi Nazrul Islam University
Assignment On
Trend Analysis of Macroeconomic Indicators of Bangladesh.
Course Tittle : Intermediate Macroeconomics
Course Tittle : Eco 222
Submitted To:
Rashedur Rahman
Lecturer, Department of Economics
Submitted By:
NAME ROLL
Aklima Akter 14122403
Joy Kumer Ghosh 14122404
Rakibul Hasan 14122439
Md. Mahmudur Rahman 14122460
Md. Fazlul Haque Khan 14122464
Submission Date: August 18, 2016

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Letter of Transmittal:
18 August ,2016
Rashedur Rahman
Lecturer of,
Dept of Economics,
Course Title: Intermediate Macroeconomics [ Eco-222]
Subject: Prayer for the submission of Assignment .
Dear Sir,
We have completed this assignment as a part of our course Intermediate Macroeconomics. This
assignment has been compiled as per your requirements. It gives us immense pleasure to tell you
that working on this assignment has given us a wide range of exposure. We have found the study
to be quite interesting, beneficial and knowledgeable. So we have tried our best to prepare an
effective and creditable report . We hope the assignment as attained its purpose to a considerable
extent for your perusal and kind consideration. It will be pleasure for us , if you kindly accept our
assignment.
However we would be glad if you enlighten us with your thoughts and views regarding the
assignment . In addition , if you wish to enquired about any of the aspects of the assignment ,we
would be glad to answer your queries.
Thanks for your valuable advice and co-operation.
Sincerely Yours
Md. Mahmudur Rahman
On Behalf the Group Members
Session:2013-14
Dept of Economics,
Jatiya Kabi Kazi Nazrul Islam University.

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SI Contents Page
1 Introduction 4
2 Economics Trend 4
3 MacroeconomicsIndicators 5
4 GNP 5
5 GDP 6
6
Inflation
7
7 Unemployment Rate 8
8 Import 9
9
Export
10
10 The NationalBudget 12
11 Tax 13
12 PersonalIncome Tax Rate of
Bangladesh
14
13 National Income 16
14 Poverty 17
15 GDP Deflator 18
16 FiscalPolicy 21
17 Conclusion 22
18 References 23

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INTRODUCTION
Macroeconomics is concerned with the analysis of the behavior of economic system in totality.
Thus macroeconomics studies how the large aggregates such as total employment, national
income or national product of an economy and the general price level are determined.
Macroeconomics is therefore a study of aggregates. Besides, macroeconomics explains how the
productive capacity and national income of a country increase over time in long-run.
ECONOMIC TREND
Trend is a pattern that is formed and interpreted from sets of data.Trend allows traders and
investors to capture profits.Economic trend is an indicator that shows how a region or country
is doing financially.It means the cycle of economics and how the economic transaction are
rolled.For example-GDP,GNP,income,economic growth etc.
There are two types of economic trend.
 Short-term trend.
 Long-term trend.
Four major factors or market forces influence both short term and long term economic trend.
1.Governments.
2. International transactions.
3.Speculation and expectation.
4. Supply and demand.
Now we can say that the overall direction in which an economy of a nation is moving is called
economic trend.

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MACROECONOMIC INDICATORS
Macroeconomic indicators are statistics that indicate the current status of the economy of a state
depending on a particular area of the economy.An economic indicator is apiece of economic
data,usually of macroeconomic scale,that is used by analysts to interpret current or future
investment possibilities or to judge the overall health of an economy.The degree of vitality is
determined the importance of an indicator.
There are three broad catagories of economic indicators.
 Leading indicators.
 Coincident indicators.
 Lagging indicators.
GNP(GROSS NATIONAL PRODUCT)
Gross national product (GNP) is a broad measure of a nation's total economic activity. GNP is
the value of all finished goods and services produced in a country in one year by its
nationals.GNP includes income earned by citizens and companies abroad, but does not include
income earned by foreigners within the country.
Gross National Product in Bangladesh remained unchanged at 8261.49 BDT Billion in 2015 from
8261.49 BDT Billion in 2014. Gross National Product in Bangladesh averaged 4471.99 BDT Billion
from 2003 until 2015, reaching an all-time high of 8261.49 BDT Billion in 2014 and a record low
of 2483.46 BDT Billion in 2003. Gross National Product in Bangladesh is reported by the
Bangladesh Bureau of Statistics.

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GDP(GROSS DOMESTIC PRODUCT)
Gross domestic product is the sum of the money values of all final goods and services produced
in the domestic economy and sold on organized markets during a specified period of
time,usually for one year.The gross domestic product measures of national income and output
for a given economy of a country.The gross domestic product in Bangladesh was worth 195.08
billion US dollars.The GDP value of Bangladesh represents 0.31 percent of the world economy.
Bangladesh GDP Last Previous Highest Lowest Unit
GDP Growth Rate 6.51 6.12 6.63 4.08 percent
GDP Annual Growth Rate 7.05 6.55 7.05 4.08 percent
GDP 195.08 172.85 195.08 4.30 USD Billion
GDP Constant Prices 8245.32 7745.39 8245.32 2372.59 BDT Billion
Gross National Product 8261.49 8261.49 8261.49 2483.46 BDT Billion
Gross Fixed Capital
Formation
4384.38 3875.14 4384.38 594.12 BDT Billion
GDP per capita 972.88 924.06 972.88 317.79 USD
GDP per capita PPP 3136.60 2979.20 3136.60 1290.40 USD
GDP From Agriculture 1892720.00 1764997.00 1892720.00 976905.00 BDT Million
GDP From Construction 1257537.00 1084839.00 1257537.00 441805.00 BDT Million
GDP From Manufacturing 2922821.00 2544831.00 2922821.00 1161971.00 BDT Million
GDP From Mining 288797.00 238757.00 288797.00 109261.00 BDT Million
GDP From Public
Administration
701031.00 506741.00 701031.00 224643.00 BDT Million
GDP From Services 1945345.00 1764017.00 1945345.00 734214.00 BDT Million
GDP From Transport 1693965.00 1500253.00 1693965.00 687386.00 BDT Million

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Bangladesh GDP Last Previous Highest Lowest Unit
GDP From Utilities 224585.00 198682.00 224585.00 69975.00 BDT Million
INFLATION
Inflation is the rate at which the general level of prices for goods and services is rising and,
consequently, the purchasing power of currency is falling. Central banks attempt to limit
inflation, and avoid deflation, in order to keep the economy running smoothly.
Consumer prices in Bangladesh increased 5.4 percent year-on-year in June of 2016, following
5.53 percent growth in the previous month. Cost of food rose 4.35 percent (+4.23 percent in
June) while prices of non-food went up 6.98 percent (+7.5 percent in June). The inflation stayed
below the government's target of 5.8 percent for 2017 fiscal year. Inflation Rate in Bangladesh
averaged 6.65 percent from 1994 until 2016, reaching a high of 16 percent in September of
2011 and a record low of -0.03 percent in December of 1996. Inflation Rate in Bangladesh is
reported by the Bangladesh Bureau of Statistics.
UNEMPLOYMENT RATE
Unemployment is a phenomenon that occurs when a person who is actively searching for
employment is unable to find work. Unemployment is often used as a measure of the health of
the economy. The most frequently measure of unemployment is the unemployment rate,
which is the number of unemployed people divided by the number of people in the labor force.

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Unemployment Rate in Bangladesh decreased to 4.30 percent in 2014 from 4.50 percent in
2013. Unemployment Rate in Bangladesh averaged 4.50 percent from 2003 until 2014, reaching
a high of 5.10 percent in 2009 and a record low of 4.30 percent in 2006. Unemployment Rate in
Bangladesh is reported by the Bangladesh Bureau of Statistics.
Bangladesh Labour Last Previous Highest Lowest Unit
Unemployment Rate 4.30 4.50 5.10 4.30 percent
Employed Persons 54.10 56.00 56.00 35.90 Million
Wages 2553.00 1485.00 2553.00 625.00 BDT/Month
Wages in
Manufacturing
243.00 206.00 243.00 113.00 Index Points
Population 157.90 155.80 157.90 50.10 Million
Retirement Age Men 59.00 59.00 59.00 57.00
Retirement Age
Women
59.00 59.00 59.00
IMPORT
Imports are the goods and services that are bought by residents, governments or businesses of a
country, but made outside of the country. It doesn't matter what the goods or services are, or how
they are sent. They can be shipped, sent by email, or even hand-carried in personal luggage on a
plane. If they are produced in a foreign country and sold to domestic residents, they are imports.

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For example, tourism products and services are still imports, even though they are sold to tourists
outside of their country. In a way, when you travel outside the country, you are technically
importing those souvenirs
Most countries would a refer to import less, and export more. Countries that rely on imports for
important commodities, such as food, oil, and industrial materials, are then dependent on other
countries to keep their population fed and their manufacturers humming. Countries with higher
import levels then need to also increase their currency reserves to pay for the imports. In other
words, a country would prefer to be a supplier to other countries.
Imports provide competition to domestic companies, who always want to sell more, whether its
locally or overseas. They also receive a competitive advantage by exporting, because they learn
and excel in producing a variety of globally-demanded goods and services.
Countries' leaders encourage export-driven economies. It's a fast way to boost GDP, increase
jobs and wages, all of which raises residents' standard of living for residents. That's means
they're much more likely to vote for their national leaders in democracies. In countries without
an elected leader, it at least means there's less likelihood of a revolution.
How do countries increase exports? They often start increasing trade protectionism, thus giving
domestic industries a competitive advantage. They raise tariffs, which are taxes on imports,

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which makes them more expensive. However, this runs the risk of retaliation by other countries
that will raise tariffs as well. In fact, this was one of the causes of the Great Depression.
It's usually safer to provide government subsidies to their own industries, which also lowers
prices. This runs slightly less risk of retaliation, since they can claim the subsidies are temporary,
or that they're needed so the poor can afford basics like fuel and food. Emerging markets,
especially, can use this claim. They can also say they need to provide their industries a chance to
catch up technologically to similar industries in developed markets.Another way countries boost
exports is through trade agreements. Once protectionism has lowered trade across-the-board,
countries start to see the wisdom in lowering tariffs.
The World Trade Organization tried to negotiate a global agreement, and almost succeeded.
However, the EU and the U.S. refused to eliminate their agricultural subsidies. As a result,
there's been an increase of bilateral and regional agreements.
The most popular method countries use to increase exports is by lowering their currency value.
Like subsidies, this increases exports by lowering the prices of goods. Countries central banks
can lower interest rates, print more currency, or buy up foreign currency to raise its value higher
in comparison. Find out which countries are winning and losing these Currency Wars. If a
country imports more than it exports, it runs a trade deficit. Although we CAN produce
everything we need, China, India and other emerging market countries can make a lot of it for
less than we can. That's because their cost of living is lower, and they can pay their workers
much, much less. This is known as the country's comparative advantage.
EXPORT
An export is a function of international trade whereby goods produced in one country are
shipped to another country for future sale or trade. The sale of such goods adds to the
producing nation's gross output. If used for trade, exports are exchanged for other products or
services in other countries.

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Exports
in Bangladesh increased to 197.75 BDT Billion in May from 187.48 BDT Billion in April
of 2016. Exports in Bangladesh averaged 36.09 BDT Billion from 1972 until 2016,
reaching an all time high of 211.99 BDT Billion in August of 2015 and a record low of
0.05 BDT Billion in February of 1972. Exports in Bangladesh is reported by the
Bangladesh Bank.
The National Budget
Want to buy that doggie in the window? Or take your friends out to dinner? How do you know if
you can afford it? Well, you could add up how much money you made in a month, then subtract
all your bills, and see what's left over. That way you'll know if you need to hold off on the
spending sprees or not. This is your 'personal budget'.
Budgeting is the process of estimating revenue and expenses during a specific period of time.
A national budget is the budget of a country. The government gets money from taxes and fees,
and spends it on things like national defense, infrastructure, grants for research, education, and
the arts, and social programs such as Social Security and Medicare.

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Bangladesh govt Budget chart:
Tk 3.41 Trillion Bangladesh Budget For 2016-17 FY:
Finance Minister Abul Maal Abdul Muhith presented the budget on Thursday afternoon – the
third one from the incumbent government.
The new budget is equivalent to 17.37 percent of Bangladesh’s GDP, which is Tk 19.61 trillion.
The current FY budget represented 17.2 percent of the GDP.
In the new budget, Tk 1.17 trillion has been earmarked for development expenditure, including
Tk 1.11 trillion for the Annual Development Programme (ADP).
Non-development expenditure has been set at Tk 2.16 trillion, 32 percent higher than the current
FY’s figure.
A large portion of the non-development budget will be spent on salaries, allowances and pension
benefit of government employees. Foreign borrowing will also be repaid from the non-
development budget.
The finance minister has plans to collect Tk 2.43 trillion, or 71 percent of the budget amount,
from the revenue sector. Of the figure, Tk 2.03 trillion will be raised through the National Board
of Revenue. The highest amount of Tk 727.64 billion has been projected to come from Value
Added Tax (VAT) – which is 35 percent higher than the current budget figure.A revenue
collection target of Tk 642.62 billion was set from VAT in the initial budget for the current FY,
but it was later downsized to Tk 539.13 billion in the revised budget.
The minister expects Tk 719.4 billion from income tax and tax on profit, against Tk 649.71
billion in the current FY.
Tk 224.5 billion will be raised from import duty, Tk 300.75 billion from supplementary duty, Tk
440 million from export duty, Tk 44.49 billion from excise, and Tk 14.28 billion from other
taxes and duties.The initial budget for the 2015-16 FY set Tk 1.76 trillion revenue collection
target, but it was cut down to Tk 1.5 trillion.

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The budget for the current FY was Tk 2.95 trillion and but it was later revised downward to Tk
2.65 trillion.The new budget sees a deficit of Tk 978.53 billion, which represents less than
percent of the GDP.This is Muhith’s 10th budget – his eighth in a row — as finance minister.
Speaker Shirin Sharmin Chaudhury presided over the Parliament session, which was attended by
Prime Minister Sheikh Hasina.
TAX
Taxes are generally an involuntary fee levied on individuals or corporations that is
enforced by a government entity, whether local, regional or national in order to finance
government activities. In economics, taxes fall on whomever pays the burden of the tax,
whether this is the entity being taxed, like a business, or the end consumers of the
business's goods
A fee charged ("levied") by a government on a product, income, or activity. If tax is
levied directly on personal or corporate income, then it is a direct tax. If tax is levied on
the price of a good or service, then it is called an indirect tax. The purpose of taxation is
to finance government expenditure. One of the most important uses of taxes is to
finance public goodsand services, such as street lighting and street cleaning. Since
public goods and services do not allow a non-payer to be excluded, or
allow exclusion by a consumer, there cannot be a market in the good or service, and so
they need to be provided by the government or a quasi-government agency, which tend
to finance themselves largely through taxes.
Type of tax:
There are several very common types of taxes:
 Income Tax (a percentage of individual or corporate earnings filed to the federal
government)
 Sales Tax (taxes levied on certain goods and services)
 Property Tax (based on the value of land and property assets)
 Tariff (taxes on imported goods imposed in the aim of strengthening internal
businesses).
Personal Income Tax Rate of Bangladesh

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The Personal Income Tax Rate in Bangladesh stands at 30 percent. Personal Income
Tax Rate in Bangladesh averaged 25.83 percent from 2004 until 2015, reaching an all
time high of 30 percent in 2014 and a record low of 25 percent in 2005. Personal
Income Tax Rate in Bangladesh is reported by the National Board of Revenue (NBR),
Bangladesh.
NATIONAL INCOME
National income is the total value a country’s final output of all new goods and services
produced in one year. Understanding how national income is created is the starting
point for macroeconomics.
3 Alternative Methods Used for Measuring National Income:
1. Value Added Method:
This is also called output method or production method. In this method the value added
by each enterprise in the production goods and services is measured. Value added by an

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enterprise is obtained by deducting expenditure incurred on intermediate goods such as
raw materials, unfinished goods (purchased from other firms from the value of output
produced by an enterprise.
2. Income Method:
This method approaches national income from distribution side. In other words, this
method measures national income at the phase of distribution and appears as income
paid and or received by individuals of the country. Thus, under this method, national
income is obtained by summing up of the incomes of all individuals of a country.
Individuals earn incomes by contributing their own services and the services of their
property such as land and capital to the national production.
3. Expenditure Method:
Expenditure method arrives at national income by adding up all expenditures made on goods and
services during a year. Income can be spent either on consumer goods or capital goods. Again,
expenditure can be made by private individuals and households or by government and business
enterprises.
GDPMP = Private final consumption expenditure + Government’s final consumption expenditure
+ Gross domestic capital formation + Exports — Imports or
GDPMP = C+G + I+ (X — M)

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= C + G + I + NX
POVERTY
Condition where people's basic needs for food, clothing, and shelter are not being met.
Poverty is generally of two types: (1) Absolute poverty is synonymous with destitution
and occurs when people cannot obtain adequate resources (measured in terms of
calories or nutrition) to support a minimum level of physical health. Absolute poverty
means about the same everywhere, and can be eradicated as demonstrated by some
countries. (2) Relative poverty occurs when people do not enjoy a certain minimum level
of living standards as determined by a government (and enjoyed by the bulk of the
population) that vary from country to country, sometimes within the same country.
In addition to a lack of money, poverty is about not being able to participate in
recreational activities; not being able to send children on a day trip with their
schoolmates or to a birthday party; not being able to pay for medications for an
illness. These are all costs of being poor. Those people who are barely able to pay for
food and shelter simply can’t consider these other expenses. When people are
excluded within a society, when they are not well educated and when they have a
higher incidence of illness, there are negative consequences for society. We all pay the
price for poverty. The increased cost on the health system, the justice system and other
systems that provide supports to those living in poverty has an impact on our economy.
Interest rate:
The percentage of the value of a balance or debt that one pays or is paid each time peri
od. For example, if one holdsa bond with a face
value of $1,000 and a 3% interest rate payable each quarter, one receives $30 each qu
arter. Thepercentage of the interest rate remains constant (usually), but the amount one
pays or is paid changes according tothe amount of the balance or debt. For example, if
one pays off part of the principal on a loan each month, theamount one pays in interest
decreases even though the rate remains the same. See also: Time Value of Money.

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GDP DEFLATOR
The Gross Domestic Product (GDP) of a country is the value of all the goods produced in a
country over the course of a year. This number is used to roughly calculate the size of a
particular economy. The GDP can be used to show the increase or decrease in the size of an
economy over a time period. The challenge with this is that the prices for those goods and
services can change with time. A general increase in prices is known as inflation and a general
decrease in prices is known as deflation. These changes in prices make it difficult to compare
current prices with historical prices. Let's look at how this effect can create confusion. We will
look at the GDP of the fictitious country of Pantonia.
In economics, the GDP deflator (implicit price deflator) is a measure of the level of prices of all
new, domestically produced, final goods and services in an economy. GDP stands for gross
domestic product, the total value of all final goods and services produced within that economy
during a specified period.

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A consumer price index (CPI) measures changes in the price level of a market basket of
consumer goods and services purchased by households.
The CPI is a statistical estimate constructed using the prices of a sample of representative items
whose prices are collected periodically. Sub-indices and sub-sub-indices are computed for
different categories and sub-categories of goods and services, being combined to produce the
overall index with weights reflecting their shares in the total of the consumer expenditures
covered by the index. It is one of several price indices calculated by most national statistical
agencies. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be
used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions,
for regulating prices and for deflating monetary magnitudes to show changes in real values. In
most countries, the CPI is, along with the population census one of the most closely watched
national economic statistics.
A consumer price index (CPI) measures changes in the price level of a market basket of
consumer goods and services purchased by households.

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The CPI is a statistical estimate constructed using the prices of a sample of representative items
whose prices are collected periodically. Sub-indices and sub-sub-indices are computed for
different categories and sub-categories of goods and services, being combined to produce the
overall index with weights reflecting their shares in the total of the consumer expenditures
covered by the index. It is one of several price indices calculated by most national statistical
agencies. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be
used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions,
for regulating prices and for deflating monetary magnitudes to show changes in real values. In
most countries, the CPI is, along with the population census one of the most closely watched
national economic statistics.
Foreign Exchange Reserves in Bangladesh decreased to 28802.90 USD Million in May from
29106.26 USD Million in April of 2016. Foreign Exchange Reserves in Bangladesh averaged
15149.85 USD Million from 2008 until 2016, reaching an all time high of 29106.26 USD
Million in April of 2016 and a record low of 7470.90 USD Million in June of 2008. Foreign
Exchange Reserves in Bangladesh is reported by the Bangladesh Bank.
Bangladesh Money Last Previous Highest Lowest Unit
Interest Rate 6.75 6.75 8.75 4.50 percent
Interbank Rate 3.70 3.67 33.54 0.74 percent
Money Supply M0 1070.59 1050.37 1124.04 34.38 BDT Billion
Money Supply M1 1740413.00 1714972.00 1740413.00 6267.00 BDT Million
Money Supply M2 8614.15 8531.85 8614.15 207.37 BDT Billion

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Bangladesh Money Last Previous Highest Lowest Unit
Money Supply M3 10344200.00 10164600.00 10344200.00 732982.00 BDT Million
Foreign Exchange
Reserves
28802.90 29106.26 29106.26 7470.90 USD Million
Loans to Private Sector 6046.83 5970.31 6046.83 152.33 BDT Billion
Deposit Interest Rate 8.20 9.08 12.05 6.04 percent
Both the total revenue and total expenditure have an increasing
trend, though an increasing gap between the two is obvious.
FISCAL POLICY
Fiscal policy determines the level of public revenue and public expenditure and directs the
measures required to maintain balance between the two Formulation and implementation of a
sound fiscal policy is one of the most important functions of the government. It lays emphasis on
maintaining macroeconomic stability through harmonizing public expenditure management.
Sound fiscal policy is also fundamental to fostering economic growth. Currently, a number of
reform programmes are in progress to update and streamline public expenditure and revenue
management. These reform programmes have a direct bearing on the outcome of fiscal policy.
There is no alternative to sound fiscal management in overall economic governance as a well
balanced public income and expenditure regime assures the private sector a stable
macroeconomic environment.

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In economics, the money supply or money stock, is the total amount of monetary assets available
in an economy at a specific time. There are several ways to define "money," but standard
measures usually include currency in circulation and demand deposits (depositors' easily
accessed assets on the books of financial institutions).
Money supply data are recorded and published, usually by the government or the central bank of
the country. Public and private sector analysts have long monitored changes in money supply
because of its effects on the price level, inflation, the exchange rate and the business cycle.
That relation between money and prices is historically associated with the quantity theory of
money. There is strong empirical evidence of a direct relation between money-supply growth and
long-term price inflation, at least for rapid increases in the amount of money in the economy. For
example, a country such as Zimbabwe which saw extremely rapid increases in its money supply
also saw extremely rapid increases in prices (hyperinflation). This is one reason for the reliance
on monetary policy as a means of controlling inflation.
CONCLUSION
The economic policy of a country represents economic growth, full employment, price stability
and balance of payment stability. In view of assessing the achievement of the objective of
economic policy and macroeconomic position of our country sector wise trend of national
income, detailed of someimportant sectors, present fiscal policy, status of budget allocation for

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some important areas, financing forthe budget, balance of payment position, credit policy,
inflation scenario, employment position andpoverty level have been analyzed and presented.
REFERENCES
1. BangladeshBureauof Statistics(www.bbs.com)
2. Bhattacharaya,DState of the BangladeshEconomyinFiscal year -2003
3. H.L. Ahuja–Principlesof Macroeconomis
4. Branson-Economics
5. www.google.com
6. www.wikipedia.com