Bangladesh will be among the top three fastest growing economies in the world by 2030, the consultancy firm PricewaterhouseCoopers (PwC) has said.
Its report titled 'The long view: how will the global economic order change by 2050?' predicts that Bangladesh could rise in the ranks by achieving an average annual growth of 4.8% over the next 34 years.
By 2050 Bangladesh, India and Vietnam will become the fastest growing economies, with Bangladesh expected to see impressive growth that will push it to 23rd place overall, the report says.
PwC ranked 32 countries by their projected global gross domestic product (GDP) at purchasing power parity (PPP), and made projections for up to 2050.
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. Its GDP (PPP), according to the report, was $628 billion, and it was projected to increase to $3,064 billion in 2050.
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Most of this projected growth will come from increased productivity as opposed to population growth. Of Bangladesh's 4.8% growth rate, 0.6% will be the result of an increased population.
In comparison, Pakistan, fourth on this rank, will owe 1.4% of its 4.4% growth to population growth.
PwC says that realising 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 realise 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."
"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 – will account for almost 50% of the world GDP by 2050, while the G7’s share will decline to only just over 20%.
The findings by the PwC, one of the world’s largest professional-services firms, show that China, India and the US will remain at the top of the table, but in a new order.
China is already the top country in terms of PPP, while India has been projected to be the world’s second-largest economy, beating the US in GDP by PPP terms before 2050.