The economic growth of Bangladesh is booming because of high value, knowledge-intensive society while the Apparel industry is growing fast. There are several potential growth factors for this Asian economy to boom beyond apparel export including foreign remittance, the largest community of IT freelancers, education, light engineering, electronics, the automotive industry.
Growth of the Economy
In the south Asian region, Bangladesh has the fastest-growing economy with a projected 7.6 percent growth this year. Throughout the decade, Bangladesh is progressing with a high rate of Gross Domestic Product. The Asian Development Bank has predicted a further growth of the GDP indicating an 8% growth rate in the next 2021 fiscal year.
Bangladesh is the second-largest apparel manufactures in the world and it doesn’t stop there. The ICT sector is one of the most progressive industries in Bangladesh. Currently, more than 120 Bangladeshi companies are exporting IT products to more than 35 countries. This IT sector growth is helping Bangladesh to earn over $1 billion. Besides more than 6,00,000 IT freelancers are working to grow its revenue. The automobile sector is another industry to boom because of the available potential labor force. A large segment of the 165.6 million people is participating in all sorts of works particularly to be 58.7 percent annually.
The high rate of investment to be another potential reason in the growth of the Bangladeshi economy. For a few decades, Bangladesh remains one of the hottest places for the fashion industry to invest. A large number of international investors are getting interested in investing in many other sectors as well.
With the growth of several industrial sectors, the government and people’s effort is helping Bangladesh in rapid urbanization. According to the current Prime Minister Sheikh Hasina, more than 48% of Bangladeshi people will live in towns by 2030. Besides PM’s 2009’s Digital Bangladesh initiative has connected people through a digital medium which is helping to coordinate with the 2021 digital economy initiative. This small nation is also predicted its future as a developed nation faster than many other countries. Due to the rapid urbanization, the nation will also become a huge market of electricity and the internet along with the mobilized food sector.
Economic Reforms Speeding Up the Economy
A decade ago Bangladesh was known for its conventional Agriculture based economy and now agriculture is no more a subsistence. Bangladesh is developing every single economic sector. Now it is the fourth-largest rice producer, second-largest jute producer, fourth-largest in mango production, fifth-largest in vegetable production and fourth-largest in inland fisheries in the world. Besides Bangladeshi scientists are decoding crops gen to further develop and increase productivity.
The government is being digitalized, and citizens are becoming more dependent on the internet. The user of the internet has radically increased and now Bangladesh is the fifth largest internet consuming nation in the Asia Pacific. As a result of increased internet users, the eCommerce industry is booming with $260 million transactions per year. According to HSBC, Bangladesh will become the 26th largest economy in the world by 2030.