In 2037, Bangladesh will become the 20th largest economy in the world and it was ranked 34th in 2022, meaning Bangladesh will jump 14 notches to stand the spot.
Media reported this citing a forecast report released recently by the British economic consulting firm Center for Economics and Business Research (CEBR).
Bangladesh also fared well from a regional perspective as it maintained its position as the region’s second largest economy with a GDP size of $429 billion. The figure is expected to reach $1,628 billion by 2037.
The country was ranked at 36th in 2021, which the research firm projected to be 35th in 2023, 26th in 2027, 24th in 2032, and 20th in 2037.
Labeling the country as a middle-income country, the CEBR said Bangladesh had an estimated PPP (purchasing power parity)-adjusted GDP per capita of $7,985 in 2022.
The report also noted that the country was not fully immune to the spillover effects of pandemic-inflicted economic losses, but its economy still managed to expand by 3.4% in the fiscal year 2019-20.
The research firm termed the expansion as a rare achievement compared to international standards.
GDP rose relatively strongly in the fiscal year 2021-22, but inflation ran hot, not least due to fallout of the conflict in Ukraine. The CEBR identified high inflation as a key downside risk for Bangladesh.
Bangladesh’s strong growth has been very much down to strong remittance flows and a robust export market. Downside risks to Bangladesh’s exports include diminishing trade as a result of a global economic downturn, along with higher input costs.
“We expect the annual rate of GDP growth to ease slightly to an average of 6.4% between fiscal year 2022-23 and fiscal year 2026-27,” the CEBR said, adding the economy would expand by 6.5% on average each year over the subsequent decade.
India maintained its position as the largest economy in South Asia. It is projected to become the third $10 trillion economy in 2035 and the world’s third largest by 2032.
In South Asia, Pakistan turned out to be the 43rd largest economy of the globe while Sri Lanka was placed at 75th, Nepal at 101st, the Maldives at 152nd, and Bhutan at 164th positions.
The US, China, and Japan are respectively the top three economies in the world, and it is forecasted that China is not set to overtake the US as the world’s largest economy until 2036.