Bangladesh moving to developed economy

Vigorous economic reforms, remittances received from Bangladesh community, acceleration in exports. In the face of global stagnation the country has recorded an estimated 8.1 percent GDP growth in 2019.Bangladesh has also jumped up to 135 among 189 countries in the 2019 human development index. It is corresponding to the performance of neighboring countries India, Bhutan and leaves behind others like Myanmar, Nepal 147 Pakistan 152 and Afghanistan 170 in the region. The next step is to reach to the level of a developed economy. Bangladeshis living abroad are sending to their country about $15-$16 billion remittances country per year. Bangladesh with the stable foreign exchange reserves, the increased demand in the domestic market, exports create a growth and development. Bangladesh borrows a large amount of money from various countries, like China and India for other development projects, particularly for power projects.
Sri Lanka, Pakistan has also fallen into the debt. The approach that Bangladesh needs to protect itself from India and China’s debt crisis is that the debt frequently often long- duration needs to be repaid within 10 years or 15 years. Sri Lanka and Pakistan, when these two countries took loans from China then they had domestic issues. There was a civil war in Sri Lanka for a long period Pakistan had been in chaos internally and internationally for many years. Bangladesh does not have this kind of issue. India’s northeastern state of Assam has put forward a National Register of Citizenship that will possibly make two million people stateless. There is fear that all these people will go to Bangladesh once the NRC process is finalized. The Teesta Water Treaty Agreement was signed but it was not concluded. There was no deal to give Bangladesh during the dry season. Bangladesh is getting digitized rapidly. This is also acknowledgement in its economy and banking system. Further to digitalization, cybersecurity is also significant. The government of Bangladesh is giving significance to cybersecurity in its economy, specifically after the cyber theft of $81 billion from the Bangladesh Bank. Bangladesh has followed export-oriented industrialization; with its large export sectors include textiles, shipbuilding, fish and seafood, jute and leather goods. It has also developed large industries in pharmaceuticals, steel and food processing. Bangladesh’s telecommunication industry has witnessed rapid growth over the years, receiving high investment from foreign companies. Bangladesh also has sufficientl reserves of natural gas and is Asia’s seventh largest gas producer. Offshore exploration activities are increasing in its maritime territory in the Bay of Bengal. It also has large deposits of limestone. The government encourages the Digital Bangladesh scheme as part of its efforts to develop the country’s growing information technology sector. China keenly observe Bangladesh as a potential gateway for its landlocked southwest, including Tibet, Sichuan and Yunnan.
In 2019, Bangladesh’s GDP per capita income is estimated as per IMF data at US$5,028 (PPP) and US$1,906 (nominal). Bangladesh is a member of the D-8 Organization for Economic Cooperation, the South Asian Association for Regional Cooperation, the International Monetary Fund, the World Bank, the World Trade Organization and the Asian Infrastructure Investment Bank. The economy counters problems of infrastructure obstacles, inadequate power and gas supplies, corruption, political social instability, natural calamities and insufficient number of skilled workers. Bangladesh is a combined market of nearly 3 billion people.HSBC forecasted that Bangladesh would be the 26th-largest economy in the world, by 2030. 66 percent is that 66 percent identical population is young who mostly under 25.
Continuing trade disputes between the United States and China have blocked global markets and agitated the established order. Projected economic growth in South Asia has fallen 1.1 percentage points in mere the last six months. Bangladesh, on the other hand, has adapted to the rapidly changing landscape and managed to maintain its striking record of economic growth. The Asian Development Bank says Bangladesh has the fastest-growing economy in the Asia-Pacific region. It is been closing in on double-digit annual growth in its Gross Domestic Product. The reason is that Bangladesh has made large advancement by finding new markets for its exports and attracting large numbers of foreign investors. It is also been investing in a type of modernization projects.
At a time when many countries are looking inwards and closing their doors, Bangladesh is open for business. Bangladesh can open its doors because of its expanding economy. Since 2009, Bangladesh’s economy has grown 188 percent. This year, Bangladesh is on track to post record high annual GDP growth of 8.1 percent, up from 7.9 percent in 2018. By comparison, other South Asian countries, including India, Pakistan, and Sri Lanka, suffered significant downfall in GDP growth in recent years. HSBC Bank recently anticipated that Bangladesh would be the 26th-largest economy in the world by 2030.Bangladesh is the fourth largest rice producer, the second largest jute producer, the fourth largest mango producer, the fifth largest vegetable producer, and fourth largest inland fish producer in the world. The garment industry remains Bangladesh’s economic framework, and which is flourishing. There is rising demand for Bangladeshi garments in the United States and markets in Australia, Canada, India, and China, Bangladeshi garment exports rose 2.7 percent in 2018 and this year will increase 11.5 percent from the year before. Foreign direct investment has increased by about 42.9 percent. Most of them invested to the production of electricity, food, and textiles. A good number of investors come from China, the United Kingdom, the Netherlands, and South Korea. Recently, Saudi Arabia’s energy giant, ACWA power, agreed to set up a gas-powered, 3,600 megawatt plant in Bangladesh.

Leave a Reply