Bangladesh is on track to have a $1 trillion economy by 2040, owing to consumer confidence, innovation in growing economic sectors, and a young, energetic workforce.
According to a Boston Consulting Group (BCG) analysis released on Friday, the South Asian country has beaten rivals including India, Indonesia, Vietnam, Philippines, and Thailand with average annual growth of 6.4 per cent between 2016 and 2021.
The domestic consumer market in Bangladesh is expected to expand to be the ninth-largest in the world. The survey also noted that between 2020 and 2025, a quickly growing middle class and wealthy class are expected to increase significantly, with a thriving gig economy supporting a workforce where the average age is only 28, according to Bloomberg.
“The country could have easily been overshadowed by its neighbor to the northeast — China — or its continental cousin to the west — India — but in this region of economic powerhouses, Bangladesh stands tall,” BCG wrote.
In 2015, Bangladesh moved up the income scale from poor to lower-middle income. Bangladesh’s GDP per capita is already larger than its neighbour, even though it is five years later than India. By 2031, the country hopes to reach upper middle income status.
Some obstacles still exist. According to BCG, recent liquidity problems, as well as pressures from foreign exchange and inflation, could shorten growth. However, Bangladesh has made steps to prepare its $416 billion economy for a prosperous few decades, provided it keeps its average growth rate around 5 per cent.
According to a BCG survey study, 57 per cent of respondents “continue to feel that, especially as the nation shifts to a skill-based economy, the next generation would have better lifestyles than themselves.”
“Though the economy faces some near-term volatility, we are confident that this highly resilient economy will continue to demonstrate robust growth in the long term,” the report said.
