Bangladesh is set to become the 21st largest economy in the world by 2039, according to the Centre for Economics and Business Research (CEBR). The nation’s diversification into pharmaceuticals and electronics, combined with infrastructure investments and a growing workforce, drives this growth.

The CEBR’s 16th annual World Economic Outlook report highlights Bangladesh’s potential to outpace high-income nations like Switzerland, the UAE, Sweden, and Belgium in GDP size. By 2039, the economy is expected to reach $1.60 trillion, climbing from its current position as the 37th largest globally.

The Challenge of Low GDP Per Capita

Despite this economic growth, Bangladesh faces challenges in individual prosperity. By 2039, the country’s GDP per capita will rank 123rd globally at $8,061. This is far below nations like Switzerland, with $156,773, and the UAE, with $105,209.

In South Asia, the Maldives will lead in GDP per capita, ranking 59th globally at $38,859, followed by Bhutan at 106th. Bangladesh will rank slightly ahead of India, which will hold the 124th position. However, it will perform better than Pakistan (162nd), Nepal (160th), and Sri Lanka (134th).

Currently, Bangladesh’s GDP per capita stands at $2,521, placing it 143rd globally. This highlights the gap between its economic growth and the standard of living for its citizens.

Shifts in the Global Economy

The global economy will double in size, growing from $110 trillion in 2024 to $221 trillion by 2039. The United States is expected to maintain its position as the largest economy. Meanwhile, China will continue to compete for the top spot.

India will achieve significant milestones. By 2025, it will surpass Japan to become the fourth-largest economy. By 2028, it will cross the $5 trillion mark, and by 2029, it will overtake Germany to secure the third position.

In contrast, the smallest economies, including Tuvalu, Nauru, the Marshall Islands, Kiribati, and Palau, will remain at the bottom of the rankings through 2039.

Striving for Balanced Growth

Bangladesh’s journey toward becoming a $1.60 trillion economy underscores its progress. However, its low GDP per capita reveals a need for strategies that ensure equitable growth. Policymakers must focus on raising living standards and reducing income inequality to create a more balanced future.

Source: The Business Standard