Expatriates are contributing significantly to GDP

Among the South Asian countries Bangladeshi Expatriates made significant contribution to the GDP (Gross Domestic Product) of the country. In 2006 Expatriate Bangladeshis has sent 800 crore US$, which is 13.1 % of the total GDP of the country. Though the amount the Nepalese sent to their country is 14.1%, the total amount they sent is 110 crore US$. On the other hand Indian are sending the highest amount , though it is 2.1% of GDP of their country. In a joint statement this was disclosed by the International Fund for Agricultural development (IFAD) and Inter-American Development Bank(IDB).

In the report it is said that last year expatriates sent more than 30000 crore US$ to their countries. This is more than the foreign development assistance and direct foreign investment which may contribute significantly in the development of the poor countries. It is said that of 162 developing countries 15 crore expatriates sent money to their families. Most of this money is used up to materialize domestic needs.

This money can’t play any significant role in the domestic economy. “How this money can play an important role in the economy is needed to be find out” said the Kevin Cleaver, Deputy president of UN Agricultural Development Fund.

80 to 90 % of the remittance is used to meet the basic need like food, housing and education of their family. Remaining money is expended for informal savings and investment.

It is found that if the GDP is increased 1% by the remittance, then the poverty is alleviated 0.4%.

“It is expected that the expatriates will invest their money if they get the confidence and opportunity in their country. If that is possible then it will create a beautiful opportunity for the future generation of their country” said Terry of Multilateral Investment Fund.

Care Taken Government of Bangladesh is trying to attract the expatriates to invest in Bangladesh and to play role in the development of the economy directly.

badrud doza

Ref: Prothom Alo, 20/10/07