Bangladesh is the 8th most populated country in the world. Having 536 billion GDP (PPP) and around 170 million people, the country is the 31st largest economy of the world. But the country’s economy is growing at more than 5% since 2004.
So, how will be the economy of Bangladesh in 2050?
In recent study titled “The World in 2050 - Will the shift in global economic power continue” projected the followings:
- Bangladesh will be the 23rd largest economy in 2050 in terms of GDP PPP
- The country’s GDP might be $1,291 billion in 2030 which is more than double compared to $536 billion of 2014
- The GDP might be $3,367 billion in 2050 which is more than 6 times compared to 2014
PWC researched 32 country's economy which contributes 84% of whole world’s GDP. Bangladesh is one of the eight countries included in this research for the first time. Here are some other projections:
- World’s economy might grow at average 3% per year in the period 2014 to 2050. Though the growth might slowdown after 2020.
- The global economic power might shift from Europe-America-Japan to Asia, leading by China and India
- For 2014 to 2050 period, projection for average population growth per year is 0.7% and average GDP growth per year is 5.1% for Bangladesh
- Rising cost in China might generate opportunities for cheaper countries like Vietnam, Bangladesh, Philippines and Indonesia
- Average working age population growth to 2050 might be nearly 1% for Bangladesh
PWC uses International Monetary Fund’s World Economic Outlook (October 2014) estimates for GDP in 2014. The research emphasizes on four factors: labor force, human capital, physical capital stock and total factor productivity. Simply, growth in working population, education and capital investment matching with technological progress of a country is estimated to project it’s economic growth.
The economy of Bangladesh
The economy of Bangladesh is getting Digital. Everything is getting fueled by digitalization. As a result cost of business is decreasing and influencing more growth in production. The Digital Economy of Bangladesh is pioneered by the youth segment of the country, who are the major driver of the whole economy.
Ease of communication is becoming another lucrative feature for investing in the country. Govt. has taken many billion dollar projects of road & highways constructions.
Dhaka will not be the center of all businesses in near future. With the help of governments around 100 new special Export Processing Zones (SEPZ) are being established. The process of land acquisition is on the way.
The scarcity of Energy is getting eradicated. Private sector has come up to assist on this issue. Moreover, govt. is importing electricity from India.
The country already has far less expensive human resources compared to any other country. Here the people have wide access to education, training and technical skill building. Recruiting skilled employees at least expense - wow! That sounds pretty good.
In Summary, Bangladesh is the next station for shifting your investment. Yes, there are minor problems. But those problems need more reduction in poverty to get eradicated. There Bangladesh needs more investment and employments. So, it is a win-win situation for both foreign investors and people of Bangladesh.
Please check the Market Entry Strategy in Bangladesh Digital Signature Industry