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Bangladesh Is On Track To Become A $1 Tn Economy By 2040: Report

Between 2016 and 2021, the South Asian nation outpaced peers such as India, Indonesia, Vietnam, the Philippines and Thailand, with an average annual growth rate of 6.4 per cent

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Bangladesh is on track to become a USD 1 trillion economy by 2040, driven by consumer optimism, innovation in emerging economic sectors and a young engaged workforce, according to Boston Consulting Group (BCG).

Between 2016 and 2021, the South Asian nation outpaced peers such as India, Indonesia, Vietnam, the Philippines and Thailand, BCG said in a report released on Friday.

Bangladesh's domestic consumer market is on track to become the world's ninth largest. A rapidly expanding middle and affluent class is expected to grow significantly between 2020 and 2025, with a robust gig economy supporting a workforce with a median age of only 28, according to the report.

“The country could easily have been overshadowed by its northeast neighbour, China, or its continental cousin, India but in this region of economic powerhouses, Bangladesh stands tall,” BCG said in the report.

Bangladesh advanced from low-income to lower-middle-income status in 2015. Despite being five years later than India, Bangladesh's GDP per capita is already higher. By 2031, the country hopes to be an upper-middle-income country.

According to BCG, some difficulties remain in recent liquidity issues, as well as foreign exchange and inflationary pressures, which may slow growth in the short term. 

However, Bangladesh has taken steps to position its USD 416 billion economy for a profitable few decades, as long as it maintains a 5 per cent average growth rate.

According to a BCG survey, 57 per cent of respondents “continue to believe the next generation will have better lives than themselves, particularly as the country transitions to a skill-based economy.”

“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.


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bangladesh economy