ASSIGNMENT ECN202

Submitted to

Saif Rahman

Submitted by
Jannatul Bakia Afrida
1910117

Ismum Uddin
2022629
 Inflation

Inflation is the persistent increase in the price level of goods and services in an economy. The
change in the inflation rate helps us to assess the condition of the economy. For example, if the
inflation rate of a country is rising it usually refers that the goods and services of that country
have increased so people of that country would experience a decline in their purchasing power.

A brief overview of Bangladesh’s economy

Bangladesh has a remarkable history of expansion and development. Over the past ten years, it
had some of the world’s fastest economic growth, helped by booming ready-made garment
(RMG) exports, income, and stable macroeconomic conditions. Bangladesh’s incredible story of
progress and reducing poverty is told to the globe. Bangladesh, which was one of the poorest
countries when it was founded in 1971, attained the lower middle-income category in 2015. It is
expected to leave the UN’s list of developed nations (LDC) in 2026. Based on the international
poverty line, poverty has decreased from 43.5 percent to 14.3 percent in 2016. Moreover, there
were improvements in many features of social development.

A brief overview of Iraq’s economy

Following the twin shocks of the pandemic and the collapse in oil prices in 2020, Iraq’s economy
is slowly beginning to recover. As oil production rises and domestic economic activity is
restored by the relaxation of Covid-19 limitations, both oil and non-oil growth are on course to
return to their pre-pandemic levels. As oil prices continue to rise, fiscal and external deficits have
turned back into surpluses. The oil industry is anticipated to be the fastest growing sector over
the medium term as output cuts by OPEC+ are gradually lifted. The impact of an ongoing
pandemic, security threats, geopolitical tensions, and climate change are just a few of the dangers
that remain in the future.

Inflation rate in Bangladesh in the last 20years. (2000-2020)

Inflation rate in Iraq in the last 20 years. (2000-2020)

Inflation rate Analysis.

The country of Bangladesh had an inflation rate of 2.01 % in 2001, which rose to 3.33 percent in
2002. It increased to 7.59 percent in 2004. The progressive rise in energy prices was the cause of
this inflation rate. The inflation rate in Bangladesh declined in 2005, and then decreased to 6.77
percent in 2006. The rate of inflation significantly rose in 2007. It increased to 9.11 percent, and
8.90 percent in 2018. When the nation was afflicted by a significant flood, the inflation rate rose.
It led to an increase in the price of necessities like rice. The rate of inflation decreased in 2009 to
5.42 percent, it decreased. However, Bangladesh lost control of the inflation rate, and in 2011 it
reached 11.40 percent, which was the highest level in the previous ten years. The absurd increase
in fuel prices was the cause. The housing and transportation industries suffered as a result of the
increase in fuel prices. The inflation rate decreased to 6.99 percent in 2012. We could see from
the graph above that the trend was quite consistent. Even though it exceeded expectations from
the government. While the government had set a target of 5.4 percent, the inflation rate from the
fiscal year 2020 was 5.56 percent. The government established a target of 5.3 percent for 2021-
2022, but because of the surge in commodity prices, it is currently higher than expected.

Over the past years, the inflation rate for consumer prices in Iraq has fluctuated between -16.1
and 448.5 percent. A 6.0 percent inflation rate was calculated for 2021. The average annual rate
of inflation throughout the observation period from 1960-2021 was 27.1 percent.

Overall comparison between the two economy’s inflation.

If we compare the inflation rate of these two countries, we can see that Iraq has experienced a
higher inflation rate than Bangladesh. Whereas Bangladesh had inflation but at a lower rate. The
average rate of inflation for Bangladesh was 6.17 percent. The reason for increasing inflation in
Bangladesh is the rise in commodity prices. On the other hand, the inflation rate in Iraq was even
more as this could be the reason for excess money supply in the economy not supported by
economic growth. However, Iraq also faced deflation in the economy after 2006 but they
recovered the deflation rate in 2008.

GDP
There have been changes in the GDP from 2001 to 2021; there is not any constant rise in Iraq’s GDP
whereas Bangladesh shows a constant rise from the beginning till now. From 2003 to 2008 in the
economy of Iraq there is economic growth as rise in economic growth. The highest GDP was in 2013. On
the other hand , Bangladesh maintain a gradual rise in GDP which lead to economic growth. This could
be due to increase in investment, government expenditure and increase in consumption pattern. The
highest economic growth was in the year of 2021.

Unemployment
Trade

Trade is the purchasing and selling of products and services for money or its equivalent in cash.
It includes the transfer or exchange of products and services in exchange for cash or cash
equivalents. The final customer is reached after the wholesaler, retailer, and manufacturer have
finished producing the items. The fulfillment of human needs depends on trade, which is carried
out not just to make a profit but also to serve the needs of the consumer. Trade is a significant
social activity because society requires a steady supply of things to satisfy its endlessly growing,
ever-evolving, and never-ending requirements. Trade began when humans first appeared on the
planet and will continue as long as people are alive. The quality of life for customers is
improved. We might thus conclude that trading is a vital social activity.

A brief overview of Bangladesh’s Trading System

Bangladesh, a nation the size of Iowa that borders both India and Burma and is located in the
northeastern part of the Indian subcontinent, is expected to have 165 million people living there
by the year 2021, according to the World Bank. The seventh most populous and most densely
inhabited nation outside of city states is Bangladesh. Bangladesh is a fantastic prospective
market for American products. According to a World Bank estimate, Bangladesh's Gross
Domestic Product (GDP) per capita was $2,503 in 2021, and the country announced in 2021 that
it will leave the category of Least Developed Country (LDC) in 2026. Since 2005, Bangladesh's
yearly GDP growth has averaged over 6%, with the exception of 2020, when the economy
slowed due to the COVID-19 epidemic. The $31.5 billion ready-made clothing (RMG) sector
and ongoing remittance inflows from foreign workers, which reached a record $24.8 billion in
fiscal year (FY) 2020–21, continue to be major drivers of Bangladesh's economic growth. The
fiscal year in Bangladesh runs from July 1 to June 20 (please note this). Bangladesh is now our
46th-largest goods trading partner, with $9.0 billion in total (bidirectional) goods trade in 2019.
Exports of goods reached $2.3 billion, while imports of goods came to $6.7 billion. In 2019,
Bangladesh and the United States had a $4.3 billion goods trade imbalance. Bangladesh's
economy ranked 39 globally in terms of GDP (current US dollars) in 2020, 52 globally in terms
of total exports, 50 globally in terms of total imports, 149 globally in terms of GDP per capita
(current US dollars), and 111 globally in terms of economic complexity (ECI).

A brief overview of Iraq’s Trading System

Iraq's economy ranked 53 globally in terms of GDP (current US dollars), 44 globally in terms of
total exports, 51 globally in terms of total imports, 115 globally in terms of GDP per capita
(current US dollars), and 90 globally in terms of economic complexity, according to the
Economic Complexity Index (ECI). Iraq was a significant importer before the UN ban. The main
imports were automobiles, industrial and electrical products, textiles and apparel, and building
supplies. Food accounted for around one-fourth of import expenditures. Although oil dominated
exports, accounting for over half of the entire export value, they were nevertheless rather broad
and included goods like dates, cotton, wool, animal products, and fertilizers. After Kuwait was
invaded and an embargo was put in place, all legitimate international trade came to a virtual stop.
Iraq didn't resume participating in international commerce until the oil-for-food program got
underway, but it was still strictly governed by the UN. Beginning in 2002, the UN loosened trade
restrictions to permit a wider range of imports, and the embargo was removed the following year.
Still a significant portion of consumer items remain imported, including food. The majority of
exports now are petroleum and petroleum products, which are sent to a number of nations,
notably Asian nations but also those in the European Union and the Americas. Asia and other
Arab nations account for the majority of imports.

Trade Value in Bangladesh in the last 20 years. (2000-2020)

Trade Value in Iraq in the last 20 years. (2000-2020)

Overall comparison between the two trading value:

With a rise from 86th to 11th in the ECI ranking during the past 20 years, Bangladesh's economy
has grown comparatively less complicated. The six-digit exports categorized using the HS96
system are used in these economic complexity rankings. We only take into account nations
having a minimum of 1 million inhabitants, exports of at least $1 billion, and goods with a global
trade value of $500 million or more. Visit the custom rankings area to investigate various ranks
and modify these settings. Iraq's economy, which dropped from position 88 to 90 in the ECI
ranking during the past 20 years, has, nevertheless, grown comparatively less complicated. The
six-digit exports categorized using the HS96 system are used in these economic complexity
rankings. We only take into account nations having a minimum of 1 million inhabitants, exports
of at least $1 billion, and goods with a global trade value of $500 million or more. Visit the
custom rankings area to investigate various ranks and modify these settings.
References
Bangladesh (BGD) exports, imports, and trade partners. OEC. (n.d.). Retrieved August 10,
2022, from https://oec.world/en/profile/country/bgd/

Iraq (IRQ) exports, imports, and trade partners. OEC. (n.d.). Retrieved August 10, 2022, from
https://oec.world/en/profile/country/irq/

Iraq (IRQ) exports, imports, and trade partners. OEC. (n.d.). Retrieved August 10, 2022, from
https://oec.world/en/profile/country/irq/

Iraq inflation ratejuly 2022 data - 2005-2021 historical - August forecast. Iraq Inflation Rate -
July 2022 Data - 2005-2021 Historical - August Forecast. (n.d.). Retrieved August 10,
2022, from https://tradingeconomics.com/iraq/inflation-cpi

Iraq inflation ratejuly 2022 data - 2005-2021 historical - August forecast. Iraq Inflation Rate -
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2022, from https://tradingeconomics.com/iraq/inflation-cpi

The long term perspective on markets. Macrotrends. (n.d.). Retrieved August 10, 2022, from
http://www.macrotrends.net/

GDP (current US$) - bangladesh. Data. (n.d.). Retrieved August 10, 2022, from
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