Economy of Chittagong

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Economy of Chittagong
বাংলাদেশে চট্টগ্রাম বিভাগ.svg
The Location of Chittagong on the Map Of Bangladesh
Statistics
GDP $41.45 Billion (Nominal)
$174.06 Billion(PPP) (2014)[1]
GDP per capita
$5,719 (PPP)
$1,464 (Nominal)[2][3]
Population below poverty line
4%[4]
Unemployment 4.70%(2014)[5]
Public finances
Expenses $7.3 Billion (Total)[6]

The economy of Chittagong is one of the largest and most rapidly growing economies in the Bangladesh. As of 2014, Chittagong is home of some of Bangladesh and World's top Coporations. Chittagong is the port-city of Bangladesh and the busiest port in South Asia. Chittagong is the export hub of Bangladesh and It grosses more than $20 Billion from export; Accounting for 45% of Bangladesh's National export. In 2014, Chittagong's Gross state product is $41.45 Billion in Nominal terms and $174.06 Billion in terms of Purchasing Power Parity, four times as much as Nepal and equivalent to Myanmar. Chittagong's per capita income is $5,719; highest in the country and poverty rate and unemployment rate is lowest; reported 4% and 4.70% in 2014. Chittagong is the largest province of Bangladesh in terms of size and second largest in population. Chittagong has the best standard of living among all Bangladeshi Divisions. As of 2014, Annual GNP growth of Chittagong is 6.3%.

History[edit]

Main article: History of Chittagong

The excavation of Neolithic fossils and tools in Sitakunda, Chittagong District indicate the presence of Stone Age settlements in the region as early as the third millennium BCE.[7] The earliest historical records of the Port of Chittagong date back to the 4th century BC, when sailors from the area embarked on voyages to Southeast Asia. The 2nd century Graeco-Roman geographer Ptolemy mentioned the port on his map as one of the finest harbours in Asia and the eastern frontier of the Indian subcontinent.[8] The 7th century traveling Chinese scholar and poet Xuanzang described it as "a sleeping beauty emerging from mists and water".[9][10]

GDP[edit]

A substantial share of Bangladesh's National GDP is attributed to Chittagong. The division generated approximately US$45 billion in nominal and US$150 billion in PPP terms, contributing around 21% of Nation's economy. Chittagong holds the status of being the second largest economy in Bangladesh, only behind Dhaka Division. The economy of Chittagong is largely based on Textile and Garment industry. Chittagong Division consists of eleven districts, including Chittagong District and Comilla District. A substantial chunk of Chittagong Division's GDP is attributed to Chittagong District (contributing around 12% of Bangladesh's GDP). In recent years, Chittagong is in the process of establishing a large Shipbuilding and Defense industry.[11] More than 60% of Country's revenue earnings come from Chittagong.

Shipbuilding Industry[edit]

In recent years, Chittagong have emerged as one of the largest shipbuilding industry in Bangladesh alongside Khulna. Companies such as Western Marine Shipyard have exported ships to Denmark, New Zealand, Germany, Kenya and India. As of 2012, The shipbuilding industries in Chittagong generates approximately US$400 million annually, as the sector targets US$4 billion in export from Shipbuilding industry by 2020.[12][13]

Chittagong Stock Exchange[edit]

CSE is one of two stock exchanges in Bangladesh, with market capitalization of US$30 billion. The stock exchange was established in 1995. The market currently holds 250 listings, and one of the top performing stock exchange in Asia.

Multinational Companies[edit]

Chittagong is home of regional headquarters of many re known international companies including Glaxo Smith Kline, Reckitt Benckiser, Unilever, James Finaly PLC, BOC Bangldesh Ltd., GEC Bangladesh Ltd., Coats Thread, Berger, KAFCO, and Duncan.

Companies based in Chittagong[edit]

  • A K Khan & Company: A.K. Khan & Company Ltd. is one of the oldest and most renowned private sector organizations in Bangladesh. Late Mr. Abul Kasem Khan, popularly known as A.K. Khan, established the company after the Second World War in 1945. Mr. A.K. Khan started his business from Chittagong, and after India and Pakistan separated in 1947, Chittagong emerged as the foremost port city and business center of the country.
  • BSRM: Bangladeshi steel manufacturing conglomerate based in Chittagong. It was founded in 1952. The company generates $800 million revenue.
  • Habib Group: Habib Group was founded in 1947.Currently company’s annual turnover is close to $500 million, and employs more than 20,000 employees and many manufacturing locations throughout Bangladesh.
  • Jamuna Oil Company: Jamuna Oil Company Limited (estd. as Pakistan National Oil in 1964; renamed as Bangladesh National Oil in 1972) is a subsidiary of the Bangladesh Petroleum Corporation that nationally markets Octane, Petrol, Diesel, Kerosene, Furnace Oil, Bitumen and Lubricants in Bangladesh.
  • KDS Group: Founded in 1983, through the establishment of one of the first garments industries in Bangladesh, Today the total group generates $500 million of annual revenues in total with over 25,000 employees, staff and workers.
  • Padma Oil Company: The Padma Oil Company Limited, formerly Burmah Eastern Limited, is a Bangladesh state owned petroleum company with its head office in Strand Road, Chittagong. It is a descendant of the historic Burmah Oil Company in the British Empire and began operations in Bengal in 1903. In 1965, Burmah Eastern was established in Chittagong jointly by Burmah Oil and East Pakistani investors.
  • S. Alam Group of Industries: Bangladeshi industrial conglomerate. The industries under this group include Food & Allied Products, Steel, Banking, Consumer products, Sugar, Cement, Power, Energy, Transportation, Shipping, Manufacturing, Hospitality, Financial Institution, Agro, Trading, Oil, Gas. Annual turnover was recorded $2.0 billion in 2014.
  • Seamark Group: multinational food processing conglomerate wholesale company with offices in Manchester, Chittagong, New Jersey and Brooklyn. The company was founded in 1976 and established in 1991 by Iqbal who is considered as one of the richest man in United Kingdom, Bilal and Kamal Ahmed. Annual turnover is $300 million.

References[edit]

  1. ^ "Economics Landscape of Chittagong". Retrieved 3 November 2014. 
  2. ^ "PriceWaterhouse Coopers - Chittagong Economy" (PDF). Retrieved 3 November 2014. 
  3. ^ "TheDailyBeast: World’s Fastest Growing Cities". Comcast. Retrieved 3 November 2014. 
  4. ^ "Chittagong Poverty". www.foodsecurityatlas.org. www.foodsecurityatlas.org. Retrieved 3 November 2014. 
  5. ^ "Chittagong Unemployment Rate 2000". CNN. Retrieved 3 November 2014. 
  6. ^ "Chittagong Division Budget" (PDF). Retrieved 3 November 2014. 
  7. ^ "Bangladesh towards 21st century". google.co.uk. 
  8. ^ Chittagong – looking for a betterfuture
  9. ^ Ring, Trudy; Watson, Noelle; Schellinger, Paul (2012-11-12). Asia and Oceania: International Dictionary of Historic Places. Routledge. pp. 344–. ISBN 978-1-136-63979-1. 
  10. ^ "Past of Ctg holds hope for economy". The Daily Star. Retrieved 29 August 2013. 
  11. ^ "Economics Landscape of Chittagong". The Chittagong Chamber and Commerce Industry. www.chittagongchamber.com. Retrieved 23 January 2016. 
  12. ^ Ethirajan, Anbarasan. "Bangladesh shipbuilding goes for export growth". BBC News. Retrieved 23 January 2016. 
  13. ^ Yee, Amy. "Bangladesh's Chance to Get It Right". New York Times (Blog). Retrieved 23 January 2016.