Bangladesh is on course to emerge as a $1 trillion economy by 2040 at an average growth rate of 5 percent, powered by a surge in middle and affluent consumers, an American consulting firm said in a study.
The domestic consumer market is set to become the ninth-largest consumer market in the world through a rapidly expanding middle and affluent class which is projected to grow from 19 million in 2020 to 34 million by 2025, according to the study released by Boston Consulting Group (BCG) on Friday.
According to a Boston Consulting Group (BCG) analysis released on Friday, the South Asian country has beaten rivals including India, Indonesia, Vietnam, Philippines, and Thailand with average annual growth of 6.4 percent between 2016 and 2021.
According to Bloomberg domestic consumer market in Bangladesh is expected to expand to be the ninth-largest in the world. The survey also noted that between 2020 and 2025, a quickly growing middle class and wealthy class are expected to increase significantly, with a thriving gig economy supporting a workforce where the average age is only 28.
With an average annual economic growth of 6.4 percent between 2016 and 2021, Bangladesh, a nation of 170 million people, has outpaced major Asian peers such as India, Indonesia, Vietnam, the Philippines and Thailand.
Rapidly growing consumer demand and greater spending in Bangladesh come from the middle and affluent classes. Bangladesh’s $416 billion economy is heavily reliant on household consumption 69 percent of the 2021 gross domestic product.
“Consumer optimism in Bangladesh is high. This vital optimism kicked off the virtuous cycle of high growth which Bangladesh has experienced over the last decade,” BCG said.
In 2015, Bangladesh moved up the income scale from poor to lower-middle income. Bangladesh’s GDP per capita is already larger than its neighbor, even though it is five years later than India’s. By 2031, the country hopes to reach upper-middle-income status.
Some obstacles still exist. According to BCG, recent liquidity problems, as well as pressures from foreign exchange and inflation, could shorten growth. However, Bangladesh has made steps to prepare its $416 billion economy for a prosperous few decades, provided it keeps its average growth rate around 5 percent.
According to a BCG survey study, 57 percent of respondents “continue to feel that, especially as the nation shifts to a skill-based economy, the next generation would have better lifestyles than themselves.”
“Though the economy faces some near-term volatility, we are confident that this highly resilient economy will continue to demonstrate robust growth in the long term,” the report said.
