When will Bangladesh’s economy reach the $1tn milestone?
The country is moving ahead to become a strong economy in the next decade, with its GDP reaching the $465-billion mark in 2022
In the post-Covid era, while many developed countries are weighed down by the global economic crisis triggered by the Ukraine war, Bangladesh has maintained an average growth of 6.4% despite facing challenges.
Thanks to different austerity measures and effective policies to overcome the hurdles, Bangladesh is regarded as one of the fastest-growing economies in the world for more than a decade.
The country is moving ahead to become a strong economy in the next decade, with its Gross Domestic Product (GDP) reaching the $465-billion mark in 2022.
Bangladesh was the second largest economy in South Asia after India and ranked 35th among the largest economies of the world, according to the latest report by the Canadian firm Visual Capitalist based on the work of the International Monetary Fund (IMF).
Meanwhile, the London-based think tank Centre for Economics and Business Research (CEBR) predicts that Bangladesh is likely to become the 20th largest economy in the world out of 191 countries by the year 2037.
According to CEBR, Bangladesh is currently the second largest economy in the region and will continue to maintain the pace till 2037 with a GDP size of $1,628 billion at current prices.
Under these circumstances, the Planning Ministry has predicted that the size of Bangladesh's economy will be $1 trillion by 2040 if the growth falls below 5%.
On the other hand, if economic growth increases to 8-9% and internal stability is maintained, it will reach $1 trillion by 2030.
The projection on Bangladesh's economy was presented by the Planning Ministry at the meeting of the Executive Committee of the National Economic Council (Ecnec), chaired by Prime Minister Sheikh Hasina, on Tuesday.
According to the report, although foreign exchange reserves are currently under pressure, Bangladesh is gradually managing the situation. Exports in the month of December increased by 9.33% compared to the previous year.
Moreover, remittance inflow also increased by 6.55% compared to the previous month. The flow is expected to increase further due to the government's incentive measures and strategies, and will ease the pressure on reserves.
Currently, the amount of foreign exchange reserves stands at $32.5 billion, and the government hopes that it will reach $36 billion by June.