The Economist published a ranking of the world’s richest countries earlier this month. However, gauging the differences in gross domestic product through the dollar income per person is not enough to determine the ranking, as a large population may put a country at the forefront but the differences in prices between countries may set them back.
Which is why it ranked countries using three measures: dollar income per person, income adjusted for local prices and income per hour worked.
It projected that Bangladesh’s GDP by income per person at market exchange rates is $2,530. When adjusting it for price differences, the scale points to $9,070. However, when accounting for the total hours of work output, the scale is pushed back to $8,050.
How well is Bangladesh doing?
Despite having a lower population than Bangladesh, Bhutan’s GDP per capita stands at $3,850. The reason for that could be the fact that Bhutan occupies a much smaller area than this country. The cost of living in Bhutan is extremely cheap, which is why the scale pushes up to $15,600. The country also has a higher output in terms of working hours and therefore a higher income of $16,400.
India has a considerably smaller GDP per capita than Bangladesh at $2,480, despite having a more developing market economy. Adjusting the scale for price difference bumps India’s income to $10,200 and the total output given by workers further bumps it to $11,400 in terms of income per hour worked.
It is worth nothing that India has surpassed China to become the country with the largest population in the world, and has therefore a more populated workforce.
The Maldives has a very high GDP per capita of $12,700, almost six times that of Bangladesh. Its population’s relatively higher purchasing power doubles the income when adjusted for prices at $24,800. The skilled workforce further increases it to $24,600 in terms of per hour worked.
Nepal has a very small GDP of $1,320. It is a less economically advanced country compared to Bangladesh and the economy faces a major hit every year due to the ongoing hundreds of earthquakes of magnitude greater than 4. As of 2024, it is still focused on reconstructing the roads and infrastructure. In terms of price differences, the scale points to $5,180. After accounting for hours worked the income is $5,390.
Pakistan’s GDP per capita lies at $1,410, which is considerably less than Bangladesh’s. The reason for this may be the ongoing political turmoil in Pakistan. Its purchasing power parity holds the income at $6,210 and income per hour worked is at $9,360. According to CEIC data, in 2023 Bangladesh had a lower national debt hovering at 23.6% of the nominal GDP whilst according to Wikipedia, Pakistan had a debt of 74.3%.
Sri Lanka’s GDP per capita is $3,830. It has significantly recovered its economy since the political and economic crises back in 2020. The income adjusted by local prices stands at $14,500 and the income obtained through hours worked is $16,900. Factors such as a more lenient restriction on immigration workers in Sri Lanka are the reason for its higher GDP per capita compared to Bangladesh.
Bangladesh's GDP has enjoyed a steadily increasing growth rate starting from around 6.5% in 2011 and increasing to nearly 8% in 2019.
While almost all the countries faced a huge economic blow during the Covid-19 pandemic, Bangladesh was still able to sustain a positive growth rate of 3.5% in 2020.
Ever since, the growth rate has started increasing slowly again and now rests at 6.6% in 2024 according to the IMF.
