Bangladesh will climb from the 40th place in the World Economic League Table in 2020 to the 25th by 2034 if the economy grows at around 7.3 per cent for nine years after 2025, according to the Centre for Economics and Business Research (CEBR) report on Friday.
The annual rate of GDP growth is forecast to slow to an average of 7.3% between 2020 and 2025.
“Over the subsequent nine years, Cebr forecasts that the economy will remain at this impressive rate, which will see Bangladesh climb from 40th place in the World Economic League Table in 2020 to 25th place by 2034,” the report added.
With a PPP adjusted GDP per capita of $5,028 in 2019, Bangladesh is a lower middle-income country.
The economy of Bangladesh performed well in 2019, expanding by an impressive 7.8%.
This is, however, below the 7.9% GDP growth rate recorded in 2018. The population has risen at a rate of just 1.0% per year since 2014.
This has meant that per capita incomes have grown considerably in recent years. Government debt as a share of GDP rose to 34.6% in 2019. This is up from 34.0% in 2018. Despite this increase, the public sector finances remain in good shape.
The relatively low debt burden has provided the government with the fiscal headroom to operate a budget deficit of 4.8% in 2019.