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Bangladesh to become biggest mover in global GDP in 2030: ICCB
International Chamber of Commerce-Bangladesh (ICCB)Bangladesh is likely to be the biggest mover in the global gross domestic product (GDP) in 2030 through becoming the 26th largest economy in the world as predicted by HSBC Global Report Òthe World in 2030, reports BSS.
The country is going to become the 26th largest economy in the world from the current 42nd position followed by the Philippines, Pakistan, Vietnam and Malaysia, the report added, according to the editorial of the current News Bulletin (July-Sept 2018) of International Chamber of Commerce-Bangladesh (ICCB) released on Wednesday.
It said the brand value of Bangladesh is also rising as the country has ranked 39th in the global brand value index 2018 reflecting its socioeconomic vivacity.
Bangladesh has a brand value of $257 billion, up 24 percent from last year, according to the Nation Brands 2018 report of the London-based Brand Finance.
The ICCB news bulletin said Bangladesh economy has kept up an impressive annual average growth rate of more than 6 percent over the last 10 years and has been increased GDP over the last couple of years.
In FY18, the bulletin said, Bangladesh’s GDP growth rate was 7.86. It is believed that the country could have easily achieved 8 percent plus growth by controlling the project implementation time, which would automatically minimise the project cost.
The public sector investment has increased over the last couple of years because of mega projects. But, the private sector investment did not increase proportionately.
For about a decade, private investment to GDP ratio has been stuck at 21 to 23 percent. But, according to country’s growth ambitions, the ratio has to be about 35 percent of GDP. A number of ASEAN countries have achieved higher GDP as their investment to GDP ratio has been in the range of 35-45 percent.
It is estimated that Bangladesh needs investment of more than $600 billion for its infrastructure, against which the country can manage around $400 billion. In order to meet the shortfall, the country has to explore alternative sources of funding, the report said.
The private sector investment is a pre-condition for attracting FDI as the foreign investors would also like to see increased commitment of the private sector, improved infrastructure facilities as well as better facilities and pro-active government agencies.
It is an urgent that all-out efforts are made to improve the ease of doing business index in order to attract FDI as well as private sector investment.
The government has enacted a new law for much needed One-Stop ServiceÓ by Bangladesh Investment Development Authority (BIDA). It is definitely a welcome move and early implementation of the One-Stop Service will hopefully attract higher FDI and private sector investments.
Besides, to facilitate private and foreign direct investment, the government has offered a number of Special Economic Zones (SEZs). The government also aims to establish 100 economic zones by 2030 to ease the crisis of land for businesses & industries and already leased a total of 76 land units for economic zones out of 100.
The ICCB bulletin said a good number of US companies is seriously considering relocating their operations from China in view of the current trade war between China and the US.
Bangladesh should be able to capitalise in this situation and offer all out facilities to attract the US companies to relocate their operation in Bangladesh, it said.
In order to meet the criteria applied by the UN for graduation to developing country status, attain Sustainable Development Goals (SDGs) and achieve higher GDP, Bangladesh needs huge investment in different sectors like in infrastructure especially in the power and energy sector, modern and effective air and seaports, highways.
Besides, there is also a need to ensure timely and cost in effective implementation of the mega projects.