# Bangladesh moves up the ranks and could become the 24th largest economy by 2036 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-05-03 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Bangladesh Economy: Fastest-Growing in the World Meta Description: Discover how Bangladesh has become one of the fastest-growing economies globally, with impressive progress in literacy, exports, and infrastructure. URL: https://financedigest.com/bangladesh-moves-up-the-ranks-and-could-become-the-24th-largest-economy-by-2036html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1359774430-1736814072092-compressed.jpg) Bangladesh, located in South Asia, has made significant strides in recent years, with the country becoming one of the fastest-growing economies in the world. Today, it is the 32nd largest economy worldwide. And although it’s the eighth most densely populated country globally, Bangladesh has managed to make remarkable progress, including increasing literacy rates, boosting exports, and improving transportation infrastructure. The Bangladesh government has proactively [prepared the country for a “smooth transition” into a new economic](https://www.financedigest.com/sme-productivity-programme-re-purposed-to-help-businesses-prepare-for-covid-19-economic-recovery.html "SME productivity programme re-purposed to help businesses prepare for Covid-19 economic recovery") environment. Its Least [Developed Country](https://www.financedigest.com/britain-launches-trade-system-for-developing-countries.html "Britain launches trade system for developing countries") (LDC) graduation strategies have laid the foundation for Bangladesh to achieve its goal of a per capita income of over US$12,500 and foreign trade of US$300 billion by 2041. According to the [World Bank](https://www.financedigest.com/strange-new-world-what-next-for-banks.html "Strange new world: What next for banks?"), Bangladesh has become a rapidly booming economy, with its per capita income almost tripling in just ten years. The country has achieved the highest cumulative [GDP growth](https://www.financedigest.com/spain-q2-quarterly-gdp-growth-revised-to-1-5-from-1-1.html "Spain Q2 quarterly GDP growth revised to 1.5% from 1.1%") globally in the last ten years and maintained solid macroeconomic stability, resulting in impressive socio-economic development, increased per capita income, and reduced poverty. One of the [key drivers](https://www.financedigest.com/packaging-and-textile-industries-key-driver-for-digital-printer-market-demand-2021.html "Packaging And Textile Industries : Key Driver For Digital Printer Market Demand 2021") of the Bangladesh economy is its ability to attract significant foreign investments. The [rising demand](https://www.financedigest.com/oil-rises-on-strong-crude-demand-despite-china-fears.html "Oil rises on strong crude demand, despite China fears") for ready-made garments (RMG) and macroeconomic stability are some of the critical factors that will help Bangladesh graduate to the 24th largest economy by 2036, according to the Centre for Economics and Business Research (CEBR) of the UK. The country has become the third-largest recipient of Foreign Direct Investment (FDI) in South Asia, after India and Pakistan, [attracting USD 2.1 billion](https://www.financedigest.com/spains-la-liga-attracts-3-2-billion-investment-from-cvc.html "Spain’s La Liga attracts .2 billion investment from CVC") in FDI in 2020 despite the pandemic. The [strategic location of Bangladesh and its large pool of young and skilled labor force have made](https://www.financedigest.com/uks-made-com-to-cut-jobs-and-launch-strategic-review.html "UK’s Made.com to cut jobs and launch strategic review") it an attractive destination for foreign investors. The RMG industry, accounting for 84% of the country’s total export earnings, is another significant contributor to the country’s [economic growth](https://www.financedigest.com/economic-growth-risks-jolt-inflation-obsessed-markets.html "Economic growth risks jolt inflation-obsessed markets"). Despite the pandemic, the sector has shown resilience, with exports [reaching USD 38.7 billion](https://www.financedigest.com/pvdc-coated-films-market-is-projected-to-reach-usd-12-3-billion-by-2028-at-a-cagr-of-4-6-from-2022-to-2028-fmi.html "PVDC Coated Films Market is projected to reach USD 12.3 billion by 2028, at a CAGR of 4.6% from 2022 to 2028: FMI") in the fiscal year 2020-21, a 15.6% increase from the previous year. The government’s investment in infrastructure, including ports and highways, has facilitated the [growth of the RMG sector](https://www.financedigest.com/how-embedded-insurance-can-drive-growth-and-value-for-the-insurance-and-finance-sectors.html "How Embedded Insurance Can Drive Growth and Value for the Insurance and Finance Sectors"). Moreover, Bangladesh has maintained macroeconomic stability with low inflation and a stable [exchange rate](https://www.financedigest.com/how-the-us-and-europes-covid-19-responses-have-affected-exchange-rates.html "How the US and Europe’s COVID-19 Responses Have Affected Exchange Rates"), which has boosted investor confidence. The country’s GDP [growth rate](https://www.financedigest.com/u-s-job-growth-picks-up-in-june-unemployment-rate-rises-to-5-9.html "U.S. job growth picks up in June; unemployment rate rises to 5.9%") has been consistently above 6% in the past decade, with a growth rate of 5.24% in the fiscal year 2020-21 despite the pandemic. Education has also been a significant area of progress for Bangladesh, with the government introducing initiatives to [improve the country’s education quality](https://www.financedigest.com/av-power-conditioners-market-will-gain-traction-over-2026-owing-to-improvements-in-audio-and-video-quality.html "AV Power Conditioners Market Will Gain Traction Over 2026 Owing To Improvements In Audio And Video Quality"). Bangladesh has [significantly improved its literacy rates](https://www.financedigest.com/specialty-carbon-black-market-is-anticipated-to-grow-at-a-significant-rate-tmr-study.html "Specialty Carbon Black Market is anticipated to Grow at a Significant Rate | TMR Study"), particularly among girls. According to a report by the United Nations, the literacy [rate for adults in the country](https://www.financedigest.com/ecb-weighs-bigger-rate-hike-with-safety-net-for-indebted-countries.html "ECB weighs bigger rate hike with safety net for indebted countries") has increased from 41.8% in 2009 to nearly 75% in 2022. The government has introduced stipends for girls who attend school, constructed new schools, and recruited nearly 350,000 new teachers. In addition, the government has also made [education free up to the secondary level](https://www.financedigest.com/poverty-education-levels-draw-battle-lines-in-french-election.html "Poverty, education levels draw battle lines in French election") and built over 20,000 schools, providing students with access to multimedia learning resources. Finally, Bangladesh has [made significant investments](https://www.financedigest.com/investing-blockchain-technologies-made-simple-new-quantatex-alternative-investment-account.html "Investing in Blockchain Technologies made simple with new Quantatex Alternative Investment Account") in transportation infrastructure in recent years, including highways, railways, and ports. The construction of several large-scale infrastructure projects has improved connectivity and reduced [travel times between different parts of the country](https://www.financedigest.com/best-countries-to-travel-to.html "Best countries to travel to"). One of the most significant transport infrastructure projects is the $3.6 [billion](https://www.financedigest.com/lingerie-market-projected-to-touch-a-valuation-of-us55-83-billion-by-2024-tmr-insights.html "Lingerie Market Projected to touch a valuation of US.83 Billion by 2024 – TMR Insights") Padma Bridge project, a multipurpose road-rail bridge built across the Padma River, connecting the country’s southwest to the northern and eastern regions. The bridge will be the largest in Bangladesh and help improve connectivity and reduce travel times between different parts of the country. Bangladesh’s remarkable progress in recent years is a testament to its people and [government’s hard work](https://www.financedigest.com/uk-minister-says-government-will-work-with-obr-on-economic-forecasts.html "UK minister says government will work with OBR on economic forecasts") and dedication. With continued efforts, Bangladesh is well on The achievements of Bangladesh are a testament to the hard [work and dedication of its people](https://www.financedigest.com/uk-employment-sector-set-for-huge-shift-over-1-5-million-people-to-trade-in-full-time-work-for-the-gig-economy.html "UK employment sector set for huge shift: Over 1.5 million people to trade in full-time work for ‘the gig economy’") and government. With continued efforts, Bangladesh is well on its way to achieving its national strategic plan, Vision 2041, to become a [developed country](https://www.financedigest.com/cosmetic-packaging-market-to-gather-traction-in-developing-countries-latest-insights-by-transparency-market-research.html "Cosmetic Packaging Market to Gather Traction in Developing Countries, Latest Insights by Transparency Market Research"). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---