DCCI expects Bangladesh’s economy rebound in 2021 by V-Shaped recovery
Dhaka Chamber of Commerce and Industry (DCCI) expect Bangladesh economy will rebound in 2021 propelled by V-Shaped recovery. A V-shaped recovery is a quick and sustained recovery after a sharp economic decline.
Talking to BSS, DCCI President Rizwan Rahman said despite COVID-19 stress, Bangladesh has registered remarkable 5.47 percent GDP growth in FY2021 backed by strong economic fundamental, international trade base, resilience absorbing economic shock and became the 3rd largest growth performing economy in 2020 as per the International Monetary Fund (IMF).
Bangladesh's per capita income increased to US$ 2,227 in FY2020-21 marking 9 percent growth. While global trade declined by 5.3 percent in 2020 Bangladesh made 15.2 percent growth in export trade. Our growth could have been larger if the global supply chain remained uninterrupted.
Following this growth momentum, Rizwan expects Bangladesh's economy will rebound in 2021 propelled by V-Shaped recovery.
He said the consistent economic performance enabled Bangladesh to meet eligibility of the United Nations Committee for Development Policy (CDP) to graduate into a developing country by 2026. He further said robust economic progress will steer Bangladesh to become a developed country by 2041.
Witnessing the unprecedented growth of Bangladesh, he informed that leading Multinational Corporations (MNCs), like Goldman Sachs, McKinsey, UBS are highly ambitious of Bangladesh.
"HSBC projects Bangladesh 26th largest economy by 2030, PWC projects 28th largest and 23rd largest economy by 2050," he mentioned.
Rizwan Rahman, however, said that the fully operational nine Export Processing Zones (EPZs), plan for 100 Economic Zones (EZ), One Stop Service, tax holiday facility up to 33 sectors, competitive labour force, demographic dividend, political stability, outstanding return, growing infrastructure development, technological advancement and competitive investment incentives have been considered as 'growth enablers' for Bangladesh, branding it as a favourite destination for trade and investment regionally.
Private investment to GDP ratio in Bangladesh reached 23.63 percent whereas overall investment to GDP ratio reached 31.75 percent. He said private investment to GDP ratio is projected to 40 percent in next decade, 32 percent with 8th five-year plan as well as higher trade growth around $100 billion targeted in 8th Five Year plan.
"Diversified manufacturing and service sectors especially Readymade Garments (RMG) and textiles, leather goods, pharmaceuticals, light engineering, plastic products, agro and food processing, IT, electronics, 4IR technology and other non-traditional and emerging manufacturing sectors offer rewarding and competitive investment leverage for foreign investors and traders", he said.
Rizwan mentioned that the confidence of the global investors in Bangladesh has increased as some bold and strategic reforms are consistently being taken considering the changing geo-economic dynamics and private sector needs.
EZ is a milestone in industrial ecosystem development which will act as economic impetus for the country attracting Foreign Direct Investment (FDI), facilitating jobs creation, promoting export diversification and spilling positive impacts on local industry.
"So far, 93 EZ sites were identified which are in progress. BEZA has already received investment commitments from Nippon Steel and Sumitomo Metal, Honda Motor Corporation, of Japan, Procter and Gamble (P&G) invested in EZs. Despite pandemic stress.
FDI in Bangladesh has reached to $2.37 billion in 2020 amidst of global FDI downturn. These endeavours caused paradigm shift in the economic atmosphere of Bangladesh. -BSS