It is good news that GDP growth of Bangladesh would surpass that of India, China and Pakistan in the current fiscal, a World Bank estimates.
Economic growth took a hit in much of South Asia in 2019 as the impact of the global economic slowdown was compounded by country-specific crises. The economic slump in India, the deepening recession in the Islamic Republic of Iran, and the looming twin fiscal and balance-of-payments crises in Pakistan have affected the outlook for many of the smaller economies in the region, which have struggled to maintain solid growth rates in an increasingly challenging global environment.
In fact, Bangladeshi economists have
pointed out that much of this
growth has been “jobless”
While global trade disputes and geopolitical tensions have dampened economic growth elsewhere, Bangladesh, Bhutan and Maldives have taken advantage of significant economic opportunities created by the turmoil. Driven by the expansion of its garment industry, which has prospered partially as a result of trade disputes between the United States and China, Bangladesh enjoyed exceptional GDP growth of 8.1 per cent in 2019
Despite infrastructure bottlenecks and shortage of power in industry, country's major macroeconomic indicators like the growth rate of GDP has remarkably increased over the last year.
While the latest news is more on the positive side, the issue of inclusive growth must not be ignored. The rich-poor divide has been growing over the past decade and the fruits of the GDP growth have not trickled down to the masses. In fact, Bangladeshi economists have pointed out that much of this growth has been “jobless”. Boosting private-sector investment can reverse this bleak scenario and make this growth more inclusive.