Trajectory of Real GDP in Bangladesh’s Economy: An Econometric Evaluation

Real GDP highlights the economic health and welfare of the country. Rapid real GDP Growth has been increasing in the journey of the Bangladesh economy over the last few decades. Due to the consistent rise in real GDP Bangladesh's economy is among the fastest growing. Regardless of its impressive growth record, the economy needs to grow at a faster rate for its future progress. Hence, it will be helpful to discover the anatomy of the real GDP trajectory of Bangladesh’s economy. It is of significance to evaluate the pattern of real GDP. The study aims to examine the pattern of real GDP in econometric nature. A decade-wise examination has been conducted to know the real GDP trajectory. To examine the pattern of real GDP, linear trend models and time series graphs have been drawn. The study reveals that Bangladesh has demonstrated the competence to achieve significant augmentation of real GDP. The positive trend of real GDP has proved the national endeavors to growth despite the challenges and impediments in different decades. The study suggests the discovery of natural resources and proper utilization and allocation of natural resources to promote real GDP in the long run. To augment the contribution of broad sectors to real GDP, sector-specific problems should be alleviated. Preferential policies should be adopted to promote the manufacturing sector for its remarkable contribution to the growth trajectory. The macroeconomic policies should focus on the development of the private sector. Bangladesh should maintain sound diplomatic relationships with donor countries and agencies to promote mutual cooperation in economic activities. Policies should focus on more liberal international trade. Finally, policies should address creativity and innovation to form new sectors in relation to the changed economic paradigm.