Bangladesh will be among the top three fastest growing economies by moving up to the 28th spot among the world’s most powerful economies by 2030.
The economic output of Bangladesh could grow from $628 billion in 2016 to $1.3 trillion in 2030, according to an analysis from PricewaterhouseCoopers (PwC).
The report ranked 32 countries by their projected global gross domestic product by purchasing power parity (PPP).
PPP estimates of GDP adjust for price level differences across countries, providing a better measure of the volume of goods and services produced by an economy as compared to GDP at current market exchange rates, which is a measure of value.
Bangladesh ranked 31st among the world’s 32 largest economies in 2016, that together account for around 85% of global GDP.
Findings by the PwC, one of the world’s largest professional-services firms, show that China, India and the US would be at the top of the table.
China is already the top country in terms of PPP. India has been projected to be the world’s second largest economy, beating the US in GDP by PPP terms before 2050.
During this period, Bangladesh will see impressive growth that will push it to the 23rd place.
Bangladesh, India and Vietnam have the potential to be the fastest growing economies between 2016 and 2050.
But realizing Bangladesh’s growth potential depends on sustained investment and reform.
“Growth in these countries is driven even more by real GDP per capita growth, suggesting capital investment and technological progress will deliver real labour productivity enhancing benefits,” the report says.
“For these countries to realize this potential, growth needs to be supported by sustained economic reforms, strengthening macroeconomic fundamentals, institutions and, crucially, mass education to ensure their rapidly growing working populations contribute productively to long term economic growth”.
A PwC report titled “The long view: how will the global economic order change by 2050?” also predicted that Bangladesh could rise further in the ranking by achieving an average annual growth of around 5% over the next 34 years.
Emerging market economies will drive global growth and eventually increase their share of world GDP, the report says. During this period, there will be a shift in global economic power.
“We project that the world economy will double in size by 2042, growing at an annual average rate of around 2.6% between 2016 and 2050.”
It also predicts that the E7 economies – Brazil, China, India, Indonesia, Mexico, Russia and Turkey – would occupy almost 50% of the world GDP by 2050, while the G7’s share would decline to only just over 20%.
Source: The Daily Ittefaq