Market capitalisation in Bangladesh inadequate for expected growth | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
June 11, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, JUNE 11, 2025
Market capitalisation in Bangladesh inadequate for expected growth

Economy

Mahmudul Islam & Mohammad Ali
29 August, 2019, 12:15 pm
Last modified: 30 November, 2019, 05:22 pm

Related News

  • Budget FY26: Necessary steps to be taken to include homemaker services in GDP
  • GDP growth target set at 5.5% for FY26
  • Focus on income distribution, not GDP alone, says Nobel laureate Abhijit Banerjee
  • China's financial salvo gains speed to shore up economic growth
  • World Bank projects lowest GDP growth in 36 years: Should Bangladesh be worried?

Market capitalisation in Bangladesh inadequate for expected growth

Low stock market capitalisation-to-GDP ratio suggests poor contribution to the country’s economic growth.

Mahmudul Islam & Mohammad Ali
29 August, 2019, 12:15 pm
Last modified: 30 November, 2019, 05:22 pm

Although the difference between the economic growth of Bangladesh and other big Asian economies is low, the difference in performance between our stock market and theirs is quite high.

This does not bode well for Bangladesh's economic output in the long run, as stock markets in some of the largest Asian economies, including Japan, China and Singapore, have been contributing for decades to their robust growth.

In Bangladesh, however, the scenario is the exact opposite. Low stock market capitalisation-to-GDP ratio suggests poor contribution to the country's economic growth.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

The ratio, measured as a percentage of the gross domestic product (GDP), helps evaluate the size of the stock market relative to the size of the economy.

Since economic growth is associated with capital formation and also has positive effects on market capitalisation, a high rate of capital formation usually results in rapid growth in production and income. 

Among 23 Asian countries, Bangladesh's market capitalisation-to-GDP ratio is the 18th largest, standing at 28.24% in 2018, according to World Bank data.

Hong Kong topped the index among Asian nations with 1052.12% market capitalisation-to-GDP ratio, followed by Singapore and Malaysia. Neighbouring India stood at the ninth position with 76.42%.    

Bangladesh also ended up in 41st place among 62 markets worldwide as of 2018.

Hong Kong and South Africa secured the first and second positions, respectively, on the index, while the US came in fifth. India ranked at the 16th position.

Ups and downs in Bangladesh's stock market World Bank data shows that Bangladesh's market capitalisation has gone through many ups and downs over the years.

In 1996, Bangladesh's stock market crashed, leading to a highly turbulent and volatile period in the country's trading history. 

Market capitalisation was 15.9% in 1996, which then plummeted to 5.74% in 1997, and 4.06% a year later.   

The second biggest crash occurred almost a decade ago in 2011. Before that, the market was vibrant and booming. 

In 2017, stock market capitalisation as percent of GDP stood at 34.51%, but then dipped to 28.24% the next year, causing Bangladesh to fall far behind India, Malaysia and Vietnam.

Top News

GDP / Economic Growth / Asian economy

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • File Photo: TBS
    DGHS issues 11-point directive to prevent spread of Covid-19 in Bangladesh
  • Rizvi at a briefing at BNP’s Nayapaltan central office on 11 June. Photo: Collected
    Yunus-Tarique meeting to usher in a fresh breeze for democracy: Rizvi
  • Members of law enforcement work to clear the area, as protests against federal immigration sweeps continue, in downtown Los Angeles, California, US June 10, 2025. Photo: REUTERS
    US cities brace for more protests as parts of Los Angeles placed under curfew

MOST VIEWED

  • Illustration: Duniya Jahan/ TBS
    Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon
  • A file photo of Bangladesh Bank Governor Dr Ahsan H Mansur. Photo: Collected
    'I have no relation with this': Ahsan Mansur debunks Joy’s allegations over daughter’s Dubai flat
  • Faiz Ahmad Tayeb. Photo: BSS
    Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb
  • Screengrab from video shows a group of local youths forcing tourists to leave a tourist spot in Utmachhra area of Sylhet's Companiganj on Sunday, 8 June 2025, citing allegations of obscene activities and environmental damage
    Locals declare tourist spot in Sylhet 'closed', force visitors to leave
  • Shakil Ahmed. Photo: Collected
    DU student allegedly hangs himself following threats over old derogatory comment about Prophet on Facebook
  • Photo shows the Land Cruiser Prado car belonging to former member of parliament (MP) Anwarul Azim Anar found in Kushtia. Photo: TBS
    Luxury car of ex-AL MP Anar, who was killed in Kolkata, found in Kushtia

Related News

  • Budget FY26: Necessary steps to be taken to include homemaker services in GDP
  • GDP growth target set at 5.5% for FY26
  • Focus on income distribution, not GDP alone, says Nobel laureate Abhijit Banerjee
  • China's financial salvo gains speed to shore up economic growth
  • World Bank projects lowest GDP growth in 36 years: Should Bangladesh be worried?

Features

Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

19h | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

2d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

4d | Bangladesh
Illustration: TBS

Unbearable weight of the white coat: The mental health crisis in our medical colleges

6d | Panorama

More Videos from TBS

Covid-19 testing to resume at hospitals amid rising infections

Covid-19 testing to resume at hospitals amid rising infections

24m | TBS Today
Curfew ordered in downtown Los Angeles after looting and vandalism

Curfew ordered in downtown Los Angeles after looting and vandalism

1h | TBS World
Israel kidnapped me in international waters: Greta Thunberg

Israel kidnapped me in international waters: Greta Thunberg

2h | TBS World
Is the chief adviser's meeting with the British Prime Minister uncertain?

Is the chief adviser's meeting with the British Prime Minister uncertain?

3h | TBS Stories
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net