Journal of Political Risk, Vol. 9, No. 7, July 2021
By Tridivesh Singh Maini
Jindal School of International Affairs,OP Jindal Global University, Sonipat
In recent years, Bangladesh has exhibited healthy growth rates and emerged as an engine of South Asian growth. In 2019 for instance, the South Asian nation grew at an impressive 8.4%. The country witnessed a 9% rise in per capita income for the year 2020-2021 (its per capita income was estimated at 2,227 USD, and it surpassed India’s GDP per capita during 2020-2021 which was 1,947 USD).
The World Bank has revised Bangladesh’s GDP growth for 2020-2021, as a result of higher than expected remittance flows (while earlier it had predicted that the South Asian nation’s GDP would grow by 1.7% it has revised estimates to 3.6%). The International Monetary Fund’s forecasts for the South Asian nation’s economic growth are higher. “According to IMF, [the] global economy will grow by 6.0% in real term[s] in 2021 and 4.4% in 2022. Whereas, their forecast for Bangladesh is 5.0% in 2021 and 7.5% in 2022,” said the minister.
Bangladesh’s economic progress has been attributed to a holistic, economic vision with a strong thrust on social service indicators and policies that focus on strengthening the country’s manufacturing sector.
Bangladesh’s increasing importance in South Asia
In addition to its economic rise, Bangladesh is also keen to enhance its overall image in South Asia.
First, Bangladesh is amongst the 40 countries that provided assistance to India in the second wave of the Covid-19 pandemic. The South Asian nation provided India 10,000 vials of Remdesivir, when the second wave of Covid-19 was at its peak. Apart from Remdesivir, Bangladesh provided PPE kits and zinc, calcium, vitamin C and other tablets.