Animated Chart: Remittance Flows and GDP Impact By Country

[mb444]

Great little animated chart showing inward remittance flow by value and percentage of GDP.

For BD it is $21b and 4.5% of GDP. The data relates to 2022 valuing BD economy at $466b

Animated Chart: Remittance Flows and GDP Impact By Country

Which countries rely on remittance flows the most? This animation shows the amount of remittance income that countries received in 2022.

www.visualcapitalist.com

For BD I suspect if remittance through hundi is considered the amount likely is double of what is being shown here.

The takeaway is BD should continue to find new manpower export destination and train our people to go into higher skilled roles. It is a good source of hard currency and these jobs increases the skillset of our workforce, gives BD greater exposure internationally and serves as a safety valve to our economy.

 

[Homo Sapiens]

For BD it is $21b and 4.5% of GDP. The data relates to 2022 valuing BD economy at $466b

Bangladesh's GDP is now less than 400 billion Dollar as Taka lost values over 20% in the last one year.

 

[Black_cats]

Bangladesh's GDP is now less than 400 billion Dollar as Taka lost values over 20% in the last one year.

The devaluation is taken into consideration for 466 billion usd mostly. It’s not much less than the quoted figures.

 

[bête noire]

Bangladesh's GDP is now less than 400 billion Dollar as Taka lost values over 20% in the last one year.

It's taken into account for IMF’s BD GDP figures. They have 2023 forecast only increasing to $484 billion even though the GDP growth is high and then $542 billion in 2024. Also, the correlation to dollar devaluation is not linear.

 

[mb444]

Bangladesh's GDP is now less than 400 billion Dollar as Taka lost values over 20% in the last one year.

Taka losing value against dollar does not mean economy shrinks.... if anything it reduces the price of our exports leading to an expansion of GDP.

The above numbers are inclusive and reflective of prevailing economic condition in 2022.

Taka has not lost any value against Euro, GBP or Yen only dollar as has many other currencies.

 

[UKBengali]

BD needs to get all those SEZs set up as soon as possible and build many thousands of factories to employ millions of low to semi-skilled BD'shis.

The people must stop as soon as possible going overseas for work to be exploited and 2030 is a good target to make this happen.

 

[StormBreaker]

@waz @WebMaster

Please impose some sort of code which can display a ‘BD’ prefix of economy related threads of Bangladesh.

I am seriously fed up of getting clickbaited to Bangladesh economic threads just because of similar pursaan e haal

 

[Homo Sapiens]

It's taken into account for IMF’s BD GDP figures. They have 2023 forecast only increasing to $484 billion even though the GDP growth is high and then $542 billion in 2024. Also, the correlation to dollar devaluation is not linear.

We have to wait until April, 2023 IMF world economic outlook data to see the impact of Taka devaluation. The figure you quoted here is a projection from last year for 2023.

 

[Homo Sapiens]

Taka losing value against dollar does not mean economy shrinks.... if anything it reduces the price of our exports leading to an expansion of GDP.

I know that currency devaulation does not mean economy get shrink but as nominal GDP calculation is based on converting GDP in local currency to US dollar, so exchange rate fluctuation effect Nominal GDP. GDP in purchasing power parity which derives GDP figure by calculating PPP conversion ratio is free from this fluctuation. In this case, PPP conversion ratio increases when local currency losses value against US Dollar thus nullifying the effect of local currency loosing value against US Dollar.

The effect of exchange rate for Nominal GDP can be seen in many countries, for example, Turkey's Nominal GDP is stuck at 700-800 billion Dollar range for the last 8-10 years due to massive and steady devaluation of Turkish Lira against US Dollar although by this time their economy fairly expanded which can be gauzed by their PPP GDP which increased considerably within this period.

India and UK as the 5th largest economy in the world also alternated several times due to inequal devaluation of Indian Rupee and Pound Sterling against US Dollar nullifying even different GDP growth rate as these two country's nominal GDP were neck to neck for several years.

 

[Homo Sapiens]

@waz @WebMaster

Please impose some sort of code which can display a ‘BD’ prefix of economy related threads of Bangladesh.

I am seriously fed up of getting clickbaited to Bangladesh economic threads just because of similar pursaan e haal

Why there should be BD prefix in this thread? The OP article is not about Bangladesh, it is for all countries who are top at remittance and anyone can discuss about any country by looking data presented here. You could post this article in Pakistan economy section and could have discussed about remittance of Pakistan if you wanted.

 

[mb444]

I know that currency devaulation does not mean economy get shrink but as nominal GDP calculation is based on converting GDP in local currency to US dollar, so exchange rate fluctuation effect Nominal GDP. GDP in purchasing power parity which derives GDP figure by calculating PPP conversion ratio is free from this fluctuation. In this case, PPP conversion ratio increases when local currency losses value against US Dollar thus nullifying the effect of local currency loosing value against US Dollar.

The effect of exchange rate for Nominal GDP can be seen in many countries, for example, Turkey's Nominal GDP is stuck at 700-800 billion Dollar range for the last 8-10 years due to massive and steady devaluation of Turkish Lira against US Dollar although by this time their economy fairly expanded which can be gauzed by their PPP GDP which increased considerably within this period.

India and UK as the 5th largest economy in the world also alternated several times due to inequal devaluation of Indian Rupee and Pound Sterling against US Dollar nullifying even different GDP growth rate as these two country's nominal GDP were neck to neck for several years.

You make good points and yes i agree with with what you say. In nominal terms there is likely to be an impact. Let us hope as supply side pressures eases this temporary corrections are reversed.

 

[Bilal9]

Our politicians are the huq-looters of our street cleaners in middle eastern countries.

Which in turn is looted by Indian Seths and politicians. They suck us dry.