Clicky
National, Front Page

Global GDP growth

Bangladesh to outshine China, India, Pakistan


Published : 20 Jan 2020 09:15 PM | Updated : 07 Sep 2020 03:40 PM

GDP growth of Bangladesh would surpass that of India, China and Pakistan in the current fiscal, a World Bank report estimates. The GDP growth rate in South Asian countries will reach 5.7 percent in 2021. The World Bank envisages that GDP growth rate in Bangladesh will increase as the country has not only been able to increase budget in infrastructure development but also it has successfully been providing the foreign investors with a business friendly environment.

The WB report says that economic growth took a hit in much of South Asia in 2019 as the impact of the global economic slowdown was compounded by country-specific crises. The economic slump in India, the deepening recession in the Islamic Republic of Iran, and the looming twin fiscal and balance-of-payments crises in Pakistan have affected the outlook for many of the smaller economies in the region, which have struggled to maintain solid growth rates in an increasingly challenging global environment. 

Regional GDP growth fell faster than the global average, dropping from 5.6 per cent in 2018 to 3.3 per cent in 2019, but was moderated by strong growth in Bangladesh, Bhutan, Maldives and Nepal. The regional outlook for the next couple of years is slightly more optimistic, however, with growth expected to pick up to 5.1 per cent in 2020 and 5.3 per cent in 2021 as the effects of one-off shocks dissipate and policymakers in South Asia accelerate fiscal stimulus effort

However, in India, as non-banking financial institutions have not been showing that much interest, the growth rate of the country will be less than 5 percent in the next 20-20 fiscal years (March 6), the report envisages. In Pakistan, the GDP growth will be 2.7 percent in the fiscal year 20-26 (June 5). In the next financial year, it may increase to 8 percent. The World Bank has published the report, analyzing the data available till December 21.

According to the World Bank's report, the pace of global economic growth this year will be faster than that of last year. The World Bank predicts that that some emerging and developing countries will see enjoy economic growth comparing to 2019. It is envisaged that the gross domestic product (GDP) in the United States and some other developing countries will decrease slightly.

Because of the uncertainty created by US-China trade war GDP growth of US will be slightly reduced to 9.5 percent. Industrial-based euro areas are also estimated to have slower GDP growth because of 'industrial activity'. However, in the emerging economies such as Brazil, gross domestic product will be higher than that of last year. Growth was almost zero in Mexico and Turkey in the 20th, and the World Bank believes that the situation there will improve this year.

While global trade disputes and geopolitical tensions have dampened economic growth elsewhere, Bangladesh, Bhutan and Maldives have taken advantage of significant economic opportunities created by the turmoil. Driven by the expansion of its garment industry, which has prospered partially as a result of trade disputes between the United States and China, Bangladesh enjoyed exceptional GDP growth of 8.1 per cent in 2019

In terms of GDP growth, Bangladesh has been ranked among the top three countries in the world. According to a UN report, the current GDP growth rate of only two countries in the world will be higher than Bangladesh in 2012. The two countries are Guyana and South Sudan. The third highest growth will be Bangladesh. Reportedly, Bangladesh's potential growth in the current fiscal year is 6.3 percent.

This is predicted by the UN report on the dynamics of the global economy, "Global Economic Situation and Prospects-2021". The report was prepared by the joint ventures of the United Nations Economic and Social Department (UN-DESA), Anktad and five regional councils of the United Nations.