Bangladesh to become $500b economy by 2026: StanChart

[Black_cats]

Bangladesh to become $500b economy by 2026: StanChart
08 Oct 2021 00:00:00

Staff Correspondent

Bangladesh will continue to grow at over 7 per cent in the next four fiscal years, which could turn it into a $500 billion economy with a per capita GDP of $3,000 by FY26, said Standard Chartered’s Global Research Team.

At a media session following the 2021 Bangladesh session of the Bank’s Global Research Briefing series on Thursday, the team members lauded Bangladesh as a compelling growth story, despite the global pandemic.

Planning Minister MA Mannan attended the event as the chief guest, while around 300 of the bank’s clients joined via video conferencing during the virtual event, said a press release.

“Bangladesh’s economy is set to accelerate after a speed bump, with GDP growth forecast at 5.5 per cent in FY21 and 7.2 per cent in FY22. The momentum will be driven by an export demand recovery, strong remittance inflows and public investment. Policy support is a prerequisite for a smooth transition to middle-income status, with per capita GDP set to reach $3,000 by FY26,” said Saurav Anand, Standard Chartered’s economist for South Asia.

This year’s research findings follow on from forecasts presented during the 2020 round of the bank’s Global Research Briefing, when researchers remained optimistic about the growth prospects of Bangladesh, even at the height of the pandemic.

Eric Robertsen, Standard Chartered’s global head of research and chief strategist, said, “While the pace and distribution of global recovery remains highly uneven, Bangladesh has made a strong comeback with one of the highest GDP growths in the world in 2020.”

He added that a robust vaccination programme and implementation of strategic infrastructure projects are expected to further increase momentum towards the nation’s LDC graduation.

Planning Minister Mannan said, “The people of Bangladesh, including the government and our business community, have once again demonstrated our tremendous resilience, ensuring that our shared development journey might have slowed, though it has not been halted.”

“We remain as committed as ever in fostering a business-friendly climate so that we can continue on our journey of inclusive progress and prosperity,” he added.

Standard Chartered Bangladesh’s Chief Executive Officer Naser Ezaz Bijoy said, “The government of Bangladesh has navigated the internal and external challenges of the pandemic remarkably well. The resilience of Bangladesh economy gives us cause for optimism. As the vaccination drive continues, the economy is set to accelerate, while lower debt levels compared to its peers provide a medium-term fiscal runway for growth.”

He said there are significant opportunities for productivity gains through technology adoption, technology inclusiveness through mobile-based solutions and the ITES sector, while growth-supportive policies focus sectors will continue to spur private investment and FDI.

https://businesspostbd.com/post/31143

 

[Black_cats]

Bangladesh economy to become 28th largest in 2030
JASIM UDDIN HAROON | Published: December 28, 2020 09:34:03 | Updated: January 01, 2021 21:57:20

In this Feb 13, 2014 file photo, Bangladeshi garment workers arrive for work early morning in Dhaka, Bangladesh — AP Photo

Bangladesh’s economy will be 28th largest in 2030 and 25th largest in 2035 , the UK's Centre for Economics and Business Research (CEBR) has made the projection in a recent report.

Austria now enjoys the same ranking, the centre said. It has said Bangladesh's economic ranking in 2021 will be identical--- 41st out of 193 countries--- to that of 2020.

Bangladesh ranked 59th in 2010 and 48th in 2015. The CEBR in its report also said by 2025, the ranking of Bangladesh will improve significantly to the 34th, the position currently held by African country Egypt.

"Bangladesh will be the 25th largest economy, which is now being ranked by Thailand, one of the Asian giant economies, by 2035 when its economy will cross $1.0 trillion mark at current prices."

The CEBR is an international independent economic forecasting and analysis firm. It released the latest forecasting on December 26.

The report said Bangladesh's annual rate of GDP will accelerate to an average of 6.8 per cent between 2021 and 2025.

Bangladesh had a PPP [purchasing power parity] adjusted GDP per capita of US$5,139 in 2020, making it a lower middle-income country in the world.

According to the forecast, the country's GDP at local currency at constant prices will stand at Tk 11,983 billion ($313 billion) in 2021. By 2025, it will go up to Tk 15,979 billion ($420 billion).

By 2030, the GDP at local currency at constant prices will stand at Tk 21,893 billion ($594 billion) and by 2035 at Tk 29,995 billion ($855 billion).

The GDP at current prices of Bangladesh will stand at $338 billion in 2021, $488 in 2025, $760 billion in 2030 and $1.2 trillion in 2035.

Bangladesh came 168th in the World Bank's 2020 Ease of Doing Business rankings, suggesting that the regulatory environment is not conducive to a thriving private sector. In 2016, the country's ranking was 173rd.

The World Bank, however, did not release ranking for 2021 following a data controversy.

The CEBR report said Bangladesh's economy enjoyed a strong rate of GDP growth in the years leading up to the COVID-19 pandemic, despite a modest rate of population growth, which averaged just 1.0 per cent per year over the past five years.

The government debt as a share of GDP rose to 39.6 per cent in 2020, which remains a low level, it added.

Looking back, public sector debt stood at 35.8 per cent of GDP in 2019.

The government operated a fiscal deficit of 6.8 per cent in 2020, facilitated in part by the low debt to GDP ratio. "This has bolstered the economy in the past months," the report said.

Bangladesh has so far had a more contained COVID-19 outbreak than has been observed elsewhere in the world.

As of the middle of December, the country had recorded 7,052 COVID-19 related deaths, equating to 4 deaths per 100,000 people.

While the harm to public health inflicted by the pandemic has been relatively limited, the effect of the outbreak on global demand and international supply chains means that the economic damage has been considerable.

"Despite the COVID-19 pandemic, the economy was able to escape a contraction in 2020."

As per the report, the USA is the number one economy out of 193 nations, followed by China. Japan is the third largest economy while Germany is the fourth and the UK is the fifth biggest economy as per the latest ranking.

jasimharoon@yahoo.com

Bangladesh economy to become 28th largest in 2030

Bangladesh’s economy will be 28th largest in 2030 and 25th largest in 2035 , the UK's Centre for Economics and Business Research (CEBR) has made the projection in a recent report. Austria now enjoys the same ranking, the centre said. It has said Bangladesh's economic ranking in 2021 wi

www.google.com

 

[Falcon26]

Pakistan being left in the dust. To understand why, watch this conversation

 

[rEd cHiLLi]

Bangladesh economy to become 28th largest in 2030
JASIM UDDIN HAROON | Published: December 28, 2020 09:34:03 | Updated: January 01, 2021 21:57:20

In this Feb 13, 2014 file photo, Bangladeshi garment workers arrive for work early morning in Dhaka, Bangladesh — AP Photo

Bangladesh’s economy will be 28th largest in 2030 and 25th largest in 2035 , the UK's Centre for Economics and Business Research (CEBR) has made the projection in a recent report.

Austria now enjoys the same ranking, the centre said. It has said Bangladesh's economic ranking in 2021 will be identical--- 41st out of 193 countries--- to that of 2020.

Bangladesh ranked 59th in 2010 and 48th in 2015. The CEBR in its report also said by 2025, the ranking of Bangladesh will improve significantly to the 34th, the position currently held by African country Egypt.

"Bangladesh will be the 25th largest economy, which is now being ranked by Thailand, one of the Asian giant economies, by 2035 when its economy will cross $1.0 trillion mark at current prices."

The CEBR is an international independent economic forecasting and analysis firm. It released the latest forecasting on December 26.

The report said Bangladesh's annual rate of GDP will accelerate to an average of 6.8 per cent between 2021 and 2025.

Bangladesh had a PPP [purchasing power parity] adjusted GDP per capita of US$5,139 in 2020, making it a lower middle-income country in the world.

According to the forecast, the country's GDP at local currency at constant prices will stand at Tk 11,983 billion ($313 billion) in 2021. By 2025, it will go up to Tk 15,979 billion ($420 billion).

By 2030, the GDP at local currency at constant prices will stand at Tk 21,893 billion ($594 billion) and by 2035 at Tk 29,995 billion ($855 billion).

The GDP at current prices of Bangladesh will stand at $338 billion in 2021, $488 in 2025, $760 billion in 2030 and $1.2 trillion in 2035.

Bangladesh came 168th in the World Bank's 2020 Ease of Doing Business rankings, suggesting that the regulatory environment is not conducive to a thriving private sector. In 2016, the country's ranking was 173rd.

The World Bank, however, did not release ranking for 2021 following a data controversy.

The CEBR report said Bangladesh's economy enjoyed a strong rate of GDP growth in the years leading up to the COVID-19 pandemic, despite a modest rate of population growth, which averaged just 1.0 per cent per year over the past five years.

The government debt as a share of GDP rose to 39.6 per cent in 2020, which remains a low level, it added.

Looking back, public sector debt stood at 35.8 per cent of GDP in 2019.

The government operated a fiscal deficit of 6.8 per cent in 2020, facilitated in part by the low debt to GDP ratio. "This has bolstered the economy in the past months," the report said.

Bangladesh has so far had a more contained COVID-19 outbreak than has been observed elsewhere in the world.

As of the middle of December, the country had recorded 7,052 COVID-19 related deaths, equating to 4 deaths per 100,000 people.

While the harm to public health inflicted by the pandemic has been relatively limited, the effect of the outbreak on global demand and international supply chains means that the economic damage has been considerable.

"Despite the COVID-19 pandemic, the economy was able to escape a contraction in 2020."

As per the report, the USA is the number one economy out of 193 nations, followed by China. Japan is the third largest economy while Germany is the fourth and the UK is the fifth biggest economy as per the latest ranking.

jasimharoon@yahoo.com

Bangladesh economy to become 28th largest in 2030

Bangladesh’s economy will be 28th largest in 2030 and 25th largest in 2035 , the UK's Centre for Economics and Business Research (CEBR) has made the projection in a recent report. Austria now enjoys the same ranking, the centre said. It has said Bangladesh's economic ranking in 2021 wi

www.google.com

 

[Bilal9]

I didn't see the video but don't want a fellow Muslim country to be "left in the dust". Inshallah they will sort out any issues they have and progress faster. Good future for all Muslims, inshallah.

A country with sincere, honest people at its core, unlike what is to its immediate East, cannot be left in the dust.

Pakistan is facing temporary headwinds and those headwinds will pass. I am more than sure of this.

Al-Sabr Al-Jameel....

 

[Bilal9]

The trends in Pakistan seem to be changing too, compared to Bangladesh.

India, Pakistan surpass Bangladesh in RMG export growth in EU, US markets

TBS Infograph

TBS Infograph
Despite Bangladesh's securing a good number of apparel work orders from the European Union and the United States, it was outnumbered by neighbouring India and Pakistan in terms of export growth in the two major markets in January-July this year. The two countries clearly capitalised on their competitive advantages.

In the first seven months of this year, Bangladesh's readymade garment exports registered a little over 18% growth in the EU, while the two neighbouring countries saw their exports rise by 22% and 28% respectively, according to Eurostat.

Likewise, exports from India and Pakistan to the US market during the same period experienced better growth over Bangladesh, according to Otexa data.

Apparel exports say an abnormal rise in yarn prices - a key ingredient that accounts for 50-60% cost of a clothing item - has given the two countries an edge over Bangladesh as they can source yarns domestically at prices 30%-50% lower than in Bangladesh.

"Many work orders slipped out of our hands and shifted to India or Pakistan because of high yarn prices in Bangladesh," Fazlee Shamim Ehsan, chief executive officer at Fatullah Fashion Limited, told The Business Standard.

As the two neighbouring countries produce cotton locally, they can offer clothing items at comparatively low prices, he said.

Md Fazlul Hoque, former president of Bangladesh Knitwear Manufacturer & Exporters Association (BKMEA), told TBS, "The difference between raw material prices might be the reason why India and Pakistan performed better than us in RMG growth. Our exports are increasing and there is room for further development."

"There is no research on why our apparel exports are not growing more. We have to find out the reasons. We need to assess what strategies our competing countries have adopted to accelerate growth," he pointed out.

However, Shahidullah Azim, vice-president of Bangladesh Garment Manufacturers & Exporters Association (BGMEA), expressing his optimism, said, "We will surpass both the countries in the coming months with a large number of work orders flowing in."

According to Eurostat data, European countries imported around $38 billion worth of apparel items in the January-July period this year, up by 13% over the same period a year ago.

Bangladesh, the second largest RMG exporter after China, exported apparel items amounting to $7.82 billion to 27 European countries in January-July this year.

Other top garment exporters to the EU market are Turkey, India, Cambodia, Vietnam, Pakistan, Morocco, Sri Lanka and Indonesia.

Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), told TBS that Bangladesh stays behind a bit because it does not have its own cotton, which can be compensated to some extent by enhancing productivity and product diversification.

"There is a competition over getting hold of the buyers moving away from China. Bangladesh should pay attention to it," he added.

Prices of cotton had been rising worldwide since the beginning of this year, leading to a surge in yarn and fabric prices.

RMG entrepreneurs have claimed that local spinning mills have been charging much higher than in the global market, while spinners have repeatedly clarified that they hiked prices in line with cotton prices.

Both the parties, however, recently reached an agreement on pricing of yarns.

In FY21, Bangladesh exported $31.45 billion worth of garment products, of which knitwear items accounted for over 50%.

In 2020, Bangladesh exported a little over $14 billion worth of RMG items to the European market, while the volume amounted to $16.45 billion in 2019.

Yarn price differences between local and global markets

According to global market data, the current cotton price is a little less than 95 cents per pound. Cotton imported by Bangladesh is mostly used to produce 30 count yarn meant for manufacturing knitwear items.

RMG exporters claim that per kg yarn price should not cost more than $3.8, including all expenses, but is being sold at $4.15-$4.2 at the local market.

Textile millers, however, say it costs about $4.12 to produce 30 count yarn per kg of yarn, which they offer at $4.2 per kg.

Drawing a comparison between 30 cotton carded yarn prices in Bangladesh and India as of last Wednesday, Fazlee Shamim Ehsan said per kg import cost of the same yarn from India is $3.60, which is sold at $4.15 per kg in Bangladesh. But Indian buyers get the same at $3.5 per kg.

 

[Trango Towers]

Pakistan being left in the dust. To understand why, watch this conversation

Pakistan is always put down in the global media as a terror nation a failed state bla bla bla yet when the sh1t hits the fan its always Pakistan that's at the centre.
CPEC will have zero impact. The fact now we have peace after 20 years will have no impact. Sadly we spend all our time listening to people who make themselves important and have no brains like Christine Unfair on defence related issues

 

[Falcon26]

Pakistan is always put down in the global media as a terror nation a failed state bla bla bla yet when the sh1t hits the fan its always Pakistan that's at the centre.
CPEC will have zero impact. The fact now we have peace after 20 years will have no impact. Sadly we spend all our time listening to people who make themselves important and have no brains like Christine Unfair on defence related issues

Did you watch the video linked and the reasons pointed out by the economist? I am afraid Pakistan’s problems are structural and self-inflicted wounds. If the fundamentals are strong, no one can harm Pakistan’s reputation. But Pakistan seems incapable of getting it’s house in order. Its a country that works only for the super rich. All its economic policies are designed around the interests of a small clique of elite, both military and civilian.

 

[Indos]

As long as Pakistan can contain its conflict in Nort Waziristan and Balochistan, then investment should come if the economy activity and industry center is done in other places.

Indonesia during Soeharto regime has internal conflict in Aceh region and also Papua, and East Timor, but the economic growth is the fastest during that period.

My suggestion is to make peace and particularly Baloch only concern is economy ( they want more share on their resources), so it should be easily solved.

TTP is more on ideology and it could be harder to solve

 

[UKBengali]

BD should be around 600 US billion dollars at least in GDP by 2026.

In fact they are probably underestimating BD’s GDP growth by 0.5-1% per annum as they have done for the last 2 decades.

BD can grow so quickly as it is so far behind in terms of gdp per capita compared to other middle-income countries. Even it’s garment industry has another 10-15 years of good growth potential before the other sectors like IT, shipbuilding, electronics and pharmaceuticals will need to do the heavy lifting.

 

[bluesky]

Bangladesh to become $500b economy by 2026: StanChart

It is now 2021. Let us wait and see what happens during the years leading to 2026. The Standard Chartered Bank certainly is not forecasting something from the Bible.

 

[Trango Towers]

Did you watch the video linked and the reasons pointed out by the economist? I am afraid Pakistan’s problems are structural and self-inflicted wounds. If the fundamentals are strong, no one can harm Pakistan’s reputation. But Pakistan seems incapable of getting it’s house in order. Its a country that works only for the super rich. All its economic policies are designed around the interests of a small clique of elite, both military and civilian.

Which country doesn't work for the super rich.
England? America? Russia. They all are slaves of the super rich.
Pakistans problems is simple. Lawa and order. The issue of corruption was highlighted in jinnah 1st speech. West uses effective marking for its agenda. You could be super brilliant like China and if it doesn't suit the west they will become your enemy.

 

[Zhukov]

Best of Luck Bangladesh. Best of Luck Dhaka.

 

[The BrOkEn HeArT]

I didn't see the video but don't want a fellow Muslim country to be "left in the dust". Inshallah they will sort out any issues they have and progress faster. Good future for all Muslims, inshallah.

You care about Muslims only even while you are praying for good.
This is racist and radical ideology you are following. That's why Muslims suffers wherever they go.

 

[bluesky]

You care about Muslims only even while you are praying for good.
This is racist and radical ideology you are following. That's why Muslims suffers wherever they go.

Actually, a person has to have a very good and broad heart to seek well of the entire mankind. We are just normal people. Some are Muslims and some are not. Usually, a person looks after the wellness of his nearest family.

Muslims are suffering not because they pray for other Muslims, but for not being properly educated in science and technologies.