In recent days we have seen people are discussing that our GDP growth overtook India’. It means that the per capita income of an average Bangladeshi citizen would be more than the per capita income of an average Indian citizen. In October 2020 The International Monetary Fund’s released a report which estimates that GDP per capita in current prices for 2020, which stands at $1887.97 for Bangladesh and $1876.53 for India. India will have a GDP per capita of $1,877 in 2020. These changes in the respective economies will be due to a 3.8% increase in Bangladesh’s GDP and a 10.3% decline in India’s GDP in 2020.
Though modern economists think GDP does not reflect the actual economic growth of any country. But countries are compared on GDP growth rate or absolute GDP. Gross domestic product (GDP) measures the total value of all the finished goods and services produced within a country’s borders in a specific period. GDP ignores the negative effects of economic growth on society, such as climate change, income inequality, and unpaid work. Still, Investors consider a country’s GDP to find their best opportunities. GDP affects personal finance, investments, and job growth.
In 2018, Bangladesh emerged as one of the fastest-growing economies in the world. It arises the question of what has driven this economic growth. According to Selim Raihan, a professor at the University of Dhaka, there are four major and one minor factor:
(a) exports of readymade garments (RMG)
(b) inward remittances
(c) sustained agriculture growth
(d) growth in microfinance and
(e) public investment in big infrastructure projects.
Other expert lists involving women in the labour force as an important factor. A key driver of growth was the RMG sector where women workers gave advantages to Bangladesh in the global export markets. Prof Raihan says Bangladesh has emerged as the second-largest exporter of garments after China and constitutes about 45% of its manufacturing GDP and 7% of total GDP. It is also the largest labour-intensive manufacturing sector employing 5 million people, 80% of whom are women, and the fastest-growing sector. Bangladesh’s manufacturing contributes nearly a quarter to its GDP. This sector also creating a lot of job opportunities. Another key to Bangladesh’s success is its adaptability after facing a decrease in cultivable land, population growth, natural calamities to improve its agricultural output. According to the World Bank, Bangladesh is now one of the largest recipients of remittance. Bangladesh has received more than $18 billion in remittances this year, which has helped stabilize the lockdown condition.
Israt Haque Zarin
Content Development Team