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Bangladesh is set to become the 24th largest economy out of 191 countries by 2036 owing to its ability to attract large foreign investments, the rising RMG demand, and macroeconomic stability, says the CEBR.
The Centre for Economics and Business Research (CEBR) disclosed the findings in its annual World Economic League Table (WELT 2022) report on Sunday, stating that Bangladesh has been among the world’s fastest growing economies over the last decade.
The country is forecast to place 41st in 2022 up from its current position of 42, reaching the 34th place in 2026, before eventually jumping to 24th in 2036. This represents an economic boom during the ongoing, as well as, the next decade.
Previously, the nation held 58th, 59th, and 46th positions in 2006, 2011, and 2016 respectively, indicating an upward trend in economic performance and consistency in growth.
As of 2021, the think tank classifies Bangladesh as a lower middle-income country.
In the report, the Bangladesh government’s efforts to maintain a low debt-to-GDP ratio and operate a fiscal deficit of 5.9% in FY21 was mentioned in glowing terms.
On the other hand, the Covid-19 mortality rate was observed to be comparatively lower than most countries worldwide – as of mid-December 2021 – with more than half of the residents vaccinated with at least one dose. It stated that the nation’s vaccination drive was in line with global standards.
Apart from rising international demand for ready-made garments (RMG), which ensures a hefty amount of income from exports, the report mentioned that a large volume of foreign investments is entering the country’s telecommunication industry driven by a competent workforce skilled in information and communication technology.
Over the last few years, China has invested heavily in Bangladesh’s economy as its strategic location provides an ease of trade accessibility via the Indian Ocean.
The report also mentioned that despite the coronavirus pandemic, the country’s economy expanded by 3.5% in 2020, a rare achievement compared to international standards. This was due to the strong remittance inflows and rebound of exports.
The CEBR expects Bangladesh to have 4.6% economic growth this year.
However, the report mentioned that the economy might face multiple hurdles while achieving a medium to long term outlook as it is yet to diversify exports beyond RMG, incorporate sustainable production processes for zero net emissions, and address infrastructural gaps for reducing disparities across geographical regions.
India has been holding the top position in the South Asian region since the first edition of the report came out in 2009, and is forecasted to become the 3rd largest economy by 2031.
Bangladesh is currently the second largest economy in the region, says the report, and will continue to keep its position till 2036 with a GDP size of $884 billion at constant prices (currently $325 billion).
Pakistan (46th) holds the third position followed by Sri Lanka (69th), Nepal (99th), Maldives (154th), and Bhutan (164th) in South Asia.
The US (1st), China (2nd), and Japan (3rd) are currently the top three economies in the world, and it is forecasted that China will become the largest within the next decade.
