The country can emerge as one of the world’s three fastest growing economies in the next three decades if mass education is ensured to raise productivity of youthful populations.
Highlighting Bangladesh’s potential until 2050, PricewaterhouseCoopers has put conditions of “sustained economic reforms” and proper “institutions” for attaining higher growth over a long period of time.economy
Bangladesh is projected to become 23rd economy by 2050 from its 31st position at present.
In its analytical report, the London-based professional services network has forecast an average annual growth of around 5 per cent between 2016 and 2050.
“We project Vietnam, India and Bangladesh to be three of the world’s fastest growing economies over this period,” PwC observed in the report titled “The Long View: How will the global economic order change by 2050?”
It pointed out that these countries will benefit from their youthful and fast growing working-age populations, boosting domestic demand and output.
The PwC report, however, predicted no significant progress in investment in Bangladesh, which was 23 per cent of gross domestic product (GDP) in 2016 and may increase to 25 per cent of GDP in 2025.
Also, quality of education including technical skills remains a concern for the country that achieved improvement in expanding literacy in the past three decades.
China will be the largest economy by 2050 and six of the seven largest economies in the world could be emerging markets by that time, according to the projection.
To realise the said growth potential, PwC suggests, emerging market governments need to implement structural reforms to improve macroeconomic stability, diversify their economies away from undue reliance on natural resources, and develop more effective political and legal institutions.
China’s rise may also offer advantages for countries such as Bangladesh.
“As China’s population ages and real labour costs increase, we are likely to see global multinationals shift some of their off-shoring jobs from China to other relatively cheaper economies, such as Vietnam, Bangladesh and Indonesia,” the report said.