Bangladesh moves up the ranks and could become the 24th largest economy by 2036
Bangladesh, located in South Asia, has made significant strides in recent years, with the country becoming one of the fastest-growing economies in the world. Today, it is the 32nd largest economy worldwide. And although it’s the eighth most densely populated country globally, Bangladesh has managed to make remarkable progress, including increasing literacy rates, boosting exports, and improving transportation infrastructure.
The Bangladesh government has proactively prepared the country for a “smooth transition” into a new economic environment. Its Least Developed Country (LDC) graduation strategies have laid the foundation for Bangladesh to achieve its goal of a per capita income of over US$12,500 and foreign trade of US$300 billion by 2041.
According to the World Bank, Bangladesh has become a rapidly booming economy, with its per capita income almost tripling in just ten years. The country has achieved the highest cumulative GDP growth globally in the last ten years and maintained solid macroeconomic stability, resulting in impressive socio-economic development, increased per capita income, and reduced poverty.
One of the key drivers of the Bangladesh economy is its ability to attract significant foreign investments. The rising demand for ready-made garments (RMG) and macroeconomic stability are some of the critical factors that will help Bangladesh graduate to the 24th largest economy by 2036, according to the Centre for Economics and Business Research (CEBR) of the UK.
The country has become the third-largest recipient of Foreign Direct Investment (FDI) in South Asia, after India and Pakistan, attracting USD 2.1 billion in FDI in 2020 despite the pandemic. The strategic location of Bangladesh and its large pool of young and skilled labor force have made it an attractive destination for foreign investors.
The RMG industry, accounting for 84% of the country’s total export earnings, is another significant contributor to the country’s economic growth. Despite the pandemic, the sector has shown resilience, with exports reaching USD 38.7 billion in the fiscal year 2020-21, a 15.6% increase from the previous year. The government’s investment in infrastructure, including ports and highways, has facilitated the growth of the RMG sector.
Moreover, Bangladesh has maintained macroeconomic stability with low inflation and a stable exchange rate, which has boosted investor confidence. The country’s GDP growth rate has been consistently above 6% in the past decade, with a growth rate of 5.24% in the fiscal year 2020-21 despite the pandemic.
Education has also been a significant area of progress for Bangladesh, with the government introducing initiatives to improve the country’s education quality. Bangladesh has significantly improved its literacy rates, particularly among girls. According to a report by the United Nations, the literacy rate for adults in the country has increased from 41.8% in 2009 to nearly 75% in 2022. The government has introduced stipends for girls who attend school, constructed new schools, and recruited nearly 350,000 new teachers. In addition, the government has also made education free up to the secondary level and built over 20,000 schools, providing students with access to multimedia learning resources.
Finally, Bangladesh has made significant investments in transportation infrastructure in recent years, including highways, railways, and ports. The construction of several large-scale infrastructure projects has improved connectivity and reduced travel times between different parts of the country.
One of the most significant transport infrastructure projects is the $3.6 billion Padma Bridge project, a multipurpose road-rail bridge built across the Padma River, connecting the country’s southwest to the northern and eastern regions. The bridge will be the largest in Bangladesh and help improve connectivity and reduce travel times between different parts of the country.
Bangladesh’s remarkable progress in recent years is a testament to its people and government’s hard work and dedication. With continued efforts, Bangladesh is well on
The achievements of Bangladesh are a testament to the hard work and dedication of its people and government. With continued efforts, Bangladesh is well on its way to achieving its national strategic plan, Vision 2041, to become a developed country.