DHAKA, Nov 14, 2018 (BSS) – 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 “the World in
2030”.
“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 today.
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 U$ 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 US$ 600
billion for its infrastructure, against which the country can manage around
US$ 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 Service”
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.