DHAKA, Bangladesh (AP) - The economy of Bangladesh is moving away from farming toward industry and providing services like banking and telecommunications, while growing steadily at a faster pace than other developing countries, according to a U.N. report released Thursday.
"The biggest challenge will be to create more jobs outside agriculture," Debapriyo Bhattacharya of the Center for Policy Dialogue, an independent think tank, told reporters while analyzing the Least Developed Countries Report 2006.
The report was prepared by the United Nations Conference on Trade and Development, or UNCTAD, and deals with developing the productive capacities of the world's 50 poorest nations, mostly in Asia and Africa.
Bangladesh's per capita gross domestic product in 2004 was US$408 (euro355), compared to the US$349 (euro303) average for least developed countries.
A traditionally agricultural society, Bangladesh's production base is now tilting toward manufacturing and service sectors, Bhattacharya said.
About 54 percent of the populous nation's labor force is now working in non-agriculture sectors -- compared to 71 percent two decades ago. Services like banking and telecommunications -- particularly mobile telephone networks -- saw the highest growth and investments, Bhattacharya said.
Between 2000-2004, Bangladesh's gross domestic product grew at an average annual rate of 5.1 -- slightly higher than the 5 percent average for other poor countries, the U.N. report said.
"Bangladesh's growth rates have been higher than that of developing countries," Bhattacharya said.
Bangladeshi exports also increased, accounting for nearly 10 percent of the total merchandise exports from poor countries, the report said.
"Bangladesh is the only non-oil exporting country that saw a rise in its merchandise exports between 2003-04," Bhattacharya said.
Bangladesh, a natural disaster-prone nation of 144 million people, also enjoyed improvements in social sectors like public health, primary school attendance and life expectancy -- with lower birth and death rates, the report said.
But the country's future challenges include increasing GDP growth rates to at least 7.5 percent, diversifying export products and markets, creating more jobs in non-agriculture sectors and improving labor productivity, Bhattacharya said.
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