Economy of Chittagong

Economy of Chittagong
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 Bangladesh. As of 2014, Chittagong is home of some of Bangladesh's and the world's top corporations. 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 was $41.45 billion in nominal terms and $174.06 billion in 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

The excavation of Neolithic fossils and tools in Sitakunda, Chittagong District, indicates 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 travelling Chinese scholar and poet Xuanzang described it as "a sleeping beauty emerging from mists and water".[9][10]

GDP

A substantial share of Bangladesh's national GDP is attributed to Chittagong. The division generated approximately US$45 billion in nominal and US$176.06 billion in PPP terms, contributing around 21% of the 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 Cumilla District. A substantial chunk of Chittagong Division's GDP is attributed to Chittagong District (contributing around 21% of Bangladesh's GDP). In recent years, Chittagong has been in the process of establishing a large shipbuilding and defence industry.[11] More than 60% of the country's revenue earnings come from Chittagong.

Shipbuilding industry

In recent years, Chittagong has emerged as one of the largest shipbuilding industry in Bangladesh alongside Khulna. Companies such as Western Marine Shipyard have exported ships to Denmark, the Netherlands, 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

CSE is one of two stock exchanges in Bangladesh, with market capitalisation 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

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

Companies based in Chittagong

  • Abul Khair Group
  • A K Khan & Company: A.K. Khan & Company Ltd. is one of the oldest and most renowned private sector organisations 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 centre 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.
  • M. M. Ispahani Limited
  • 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.
  • PHP Group (BD)
  • 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 men in United Kingdom, Bilal and Kamal Ahmed. Annual turnover is $300 million.

References

  1. ↑ "Economics Landscape of Chittagong". Retrieved 3 November 2016.
  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. Archived from the original on 27 January 2011. 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 Archived 26 September 2013 at the Wayback Machine.
  9. ↑ Ring, Trudy; Watson, Noelle; Schellinger, Paul (12 November 2012). 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. Archived from the original on 13 April 2014. 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.
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