WB ranks Bangladesh 3rd largest economy in S Asia

FE Team | Published: August 02, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
Bangladesh has emerged the world's 56th largest economy, with its economic output totalling US$62 billion (6,200 crore), according to the World Bank.
In terms of the size of Gross Domestic Product (GDP), as reckoned in 2006, Bangladesh also became the third largest economy in South Asia, according to the latest estimates tallied by the bank, headquartered in Washington.
Bangladesh economy is much larger than that of the conflict-torn Sri Lanka, although per capita GDP in the island state far exceeds that of Bangladesh. The GDP of Sri Lanka, which is the fourth largest economy in the SAARC region, was reckoned at $27 billion.
According to government figures, the per capita income of Bangladesh rose to $520 in the last fiscal from $480 of the fiscal 2006, as the economy continues to power ahead.
A look at the global ranking reveals that Bangladesh is also ahead of Vietnam ($61 billion), considered an emerging economic tiger in South East Asia.
Bangladesh economy has sustained growth in the range of 5.5 per cent in the last decade, although the rate decelerated to 6.5 per cent in the just-out fiscal.
The economy posted record growth of 6.6 per cent in the fiscal 2006.
The International Monetary Fund (IMF) said the country's economy is expected to grow by around 6.5-7.0 per cent for the medium term, riding largely on buoyant garment exports and remittance flows.
The growth momentum can be maintained in view of the fact that agriculture is expected to pick up again in FY08 and aid and private flows will help sustain investment, including in power infrastructure, the IMF said in a recent analysis.
Similarly, the Asian Development Bank (ADB) said Bangladesh holds "strong potential" for higher GDP growth of 7.0 per cent-8.0 per cent for the medium term.
In its latest quarterly economic update, the ADB said: "Growth was underpinned by steady expansion in manufacturing and continued buoyancy in services. Private consumption was the main driver of growth, bolstered by strong remittance inflows".
At 24.3 per cent of GDP, investment during FY2007 was lower than 24.7 per cent of the preceding year causing a decline in public investment, while private investment rose modestly.