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Bangladesh to become 24th largest economy by 2036

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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.

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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.

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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.

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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.

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Bangladesh

Irene Khan appointed Bangladesh’s permanent representative to UN

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The government has appointed internationally renowned human rights advocate Irene Khan as Bangladesh’s permanent representative to the United Nations, granting her the rank of state minister.

The Cabinet Division issued a gazette notification on Wednesday confirming her contractual appointment.

According to the notification, Irene Khan will receive the rank, salary, allowances and other benefits of a state minister while serving as Bangladesh’s permanent representative and ambassador to the UN.

She will succeed Salahuddin Noman Chowdhury, the current permanent representative to Bangladesh’s UN Mission. Foreign ministry officials said Chowdhury is set to become the country’s next foreign secretary.

Khan has served as the UN Special Rapporteur on the promotion and protection of the right to freedom of opinion and expression since Aug 1, 2020, becoming the first woman to hold the mandate since it was established in 1993.

An internationally recognised advocate for human rights, gender equality and social justice, she also teaches at the Graduate Institute of International and Development Studies in Geneva.

She was secretary general of London-based Amnesty International from 2001 to 2009, becoming the first woman to lead the global human rights organisation. During her tenure, Amnesty expanded its work on economic, social and cultural rights alongside political and civil rights, and launched its first global campaign to end violence against women and girls.

From 2012 to 2019, Khan headed the International Development Law Organization (IDLO), an intergovernmental organisation dedicated to the rule of law and sustainable development.

She previously served as a visiting professor at the State University of New York Law School in 2011 and as chancellor of the University of Salford in the United Kingdom from 2009 to 2015.

Khan began her professional career with the UN High Commissioner for Refugees (UNHCR), where she worked for 21 years in headquarters and field operations, including as chief of mission in India.

She has also served on the World Bank Gender Advisory Council, the UNAIDS High Level Panel on HIV Prevention and Human Rights, and the UN Global Compact Advisory Council. She has been a governing board member of the Overseas Development Institute in the UK, BRAC and Uganda-based Barefoot Law.

Born in Bangladesh, Khan studied at University of Manchester and Harvard Law School. She has received several international honours, including the Sydney Peace Prize, for her contribution to human rights.

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Bangladesh

Tarique outlines plan for employment exchange centres, expansion of overseas labour markets

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The government will establish Employment Exchange Centres across Bangladesh to strengthen domestic labour market management, improve skills development and expand job opportunities, Tarique Rahman has said.

Responding to a question from Tangail-6 MP Robiul Awal in parliament on Wednesday, the prime minister said the centres would be created in line with the government’s election manifesto.

He also said the government is working to reopen the Malaysian labour market, expand opportunities in Thailand, South Korea and Japan, and revive or widen labour markets in Oman, Bahrain and the United Arab Emirates through diplomatic efforts.

The government is also actively negotiating to set up visa centres in Dhaka for European nations like North Macedonia, Serbia, Mauritius, and Portugal to ease the migration process for skilled Bangladeshi workers, he said.

He added that the Bureau of Manpower, Employment and Training (BMET) will introduce more demand-driven language courses and increase the number of training institutions.

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Bangladesh

Bangladesh extends curbs on govt-funded foreign travel, tightens rules on official vehicle purchases

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The government has extended restrictions on government-funded overseas travel for public officials in the ongoing fiscal year and tightened rules on the purchase of official vehicles as part of efforts to reduce public expenditure.

The Finance Division issued a notification on Wednesday saying the measures are aimed at ensuring the proper use of limited public resources, bringing inflation to a tolerable level and maintaining macroeconomic stability.

Under the directive, government officials and employees will continue to be barred from attending seminars, symposiums and workshops abroad at government expense.

The notification also imposes stricter controls on the purchase of vehicles under both development and operational budgets.

Only vehicles included in the approved Table of Organisation and Equipment (TO&E) that are more than 10 years old may be replaced, it said.

New government institutions will require prior approval from the Finance Division before purchasing TO&E-listed vehicles.

The Finance Division also instructed all government agencies to suspend expenditure from all types of block allocations.

Funding for the purchase of all categories of vehicles, including motor vehicles, watercraft and aircraft, has also been halted.

However, vehicles used for transporting personnel rather than for personal use may be replaced if they are more than a decade old.

Newly established government institutions may also procure such vehicles only with Finance Division approval.

The notification also states that, except for ambulances and vehicles used for security purposes, all replacement or newly purchased government cars and jeeps must be fully electric.

The government said the measures are intended to curb operational spending while supporting broader efforts to maintain fiscal discipline and economic stability.

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