88pc of BD job depends on domestic final demand

Around 88 per cent of the employment in Bangladesh is depended on the domestic final demand, according to an estimate of the Asian Development Bank (ADB).

Again, only 8.0 per cent of the total job of the country depends on the final demand from the advanced economies while the rest amount depends on the rest of the world.

ADB decomposed the total number of jobs servicing final demand in 2015 into domestic final demand, final demand from advanced economies, and final demand from the rest of the world. It has been done to determine how dependent employment in developing Asia is on final demand from advanced economies.

ADB estimation showed that around 82 per cent of the employment in the 12 Asian economies depends on domestic final demand.

“(It) demonstrates rebalancing away from a growth model led by manufacturing for export to growth led by services and domestic consumption,” said the Manila-based lending agency in its latest Asian Development Outlook (ADO-2018) released on Wednesday.

“However, variation across countries has domestic demand in Taipei, China a low 53 per cent and in Viet Nam at 55 per cent, and much higher in Bangladesh at 88 per cent and India at 87 per cent,”  it added.

ADB pointed out that about 10 per cent of jobs in the 12 Asian economies including Bangladesh service final demand from advanced economies.

“Taipei, China and Viet Nam are relatively vulnerable to reshoring because they have the highest share of jobs dependent on final demand from advanced economies, at 25 per cent for Taipei, China and 26 per cent for Vietnam,” it added.

ABD mentioned that reshoring aims to move production closer to customers and thereby shorten the time required to get a product on the market, lower production costs and improve efficiency.

ABD was of the view that consumer markets in advanced economies were increasingly saturated, even as demand from Asia’s expanding middle class increased.