Bangladesh is on the path to gain the title of “$1 Trillion Economic Nation” by 2040. Positive economic factors like consumer optimism, innovation in emerging economic sectors and a young engaged workforce have become the driving force of the economy, according to Boston Consulting Group (BCG).
In a BCG report released on Friday, the period between 2016 and 2021 had the average annual growth of 6.4%. With this the South Asian nation has surpassed the likes of India, Indonesia, Vietnam, the Philippines and Thailand.
The domestic consumer market in Bangladesh is expected to grow to be the ninth-largest in the world. The report also noted that between 2020 and 2025, a rapidly growing middle class and wealthy class are expected to increase significantly, with a thriving gig economy supporting a workforce where the median age is only 28.
In its report the BCG wrote, “The country could have easily been overshadowed by its neighbor to the northeast — China — or its continental cousin to the west — India — but in this region of economic powerhouses, Bangladesh stands tall.”
Bangladesh grew from a low-income to lower-middle-income country in 2015. Though the growth is five years behind India, Bangladesh’s gross domestic product (GDP) per capita is still higher than its neighbor. Bangladesh has a target to become an upper-middle-income country by 2031.
However, the challenges are not over yet. Latest economic issues like liquidity, foreign exchange and inflationary pressures, may work as stoppers in the coming time, as per BCG. But as long as it maintains an average growth rate of approximately 5%, Bangladesh has taken steps to position its $416 billion economy for a prosperous few decades.
BCG took a survey and according to its analysis, 57% of respondents “continue to believe the next generation would have better lives than themselves, especially as the country transitions to a skill-based economy.”
The report also said, “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.”