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Bangladesh set to overtake India in per capita GDP: IMF

  • News Desk,
    Published: 2020-10-16 18:28:43 BdST

Bangladesh's per capita GDP is on track to surpass India's in 2020-21, according to the International Monetary Fund.

In the latest World Economic Outlook, the IMF forecasts a 4 percent growth in Bangladesh's per capita GDP in 2020 to $1,888.

Meanwhile, the per capita GDP in neighbouring India is expected to decline 10.5 percent to $1,877, a four-year low, as it experiences a sharp economic contraction triggered by the strict coronavirus lockdowns across the country.

Photo: Asif Mahmud Ove (File Photo)

Photo: Asif Mahmud Ove (File Photo)

The projections would put India among the three poorest performing countries in South Asia in terms of per capita GDP, with only Pakistan and Nepal below them. Apart from Bangladesh, the average income in Bhutan, Maldives, and Sri Lanka is also set to outpace India.

However, IMF has forecast a sharp economic in India next year. In 2021, India’s per capita GDP is projected to grow by 8.2 percent to $2,030, compared to Bangladesh’s expected growth of 5.4 per cent to $1,990.

The GDP figure for both countries is at current prices.

Meanwhile, forecasts for the global economy were "somewhat less dire" as wealthy countries and China rebounded more quickly than expected from coronavirus lockdowns, the IMF said.

File Photo

File Photo

It forecast a global contraction of 4.4% in 2020, an improvement over a 5.2% contraction predicted in June, when business closures reached their peak. It is still the worst economic crisis since the 1930s Great Depression, the Fund said.

The global economy will return to growth of 5.2% in 2021, the IMF said, but the rebound will be slightly weaker than forecast in June, partly due to the extreme difficulties for many emerging markets and slowing reopening momentum as the virus continues to spread.

The forecasts reflect revised foreign exchange weightings for purchasing power parity that slightly increase the influence of advanced economies on global output.