News:The economic outlook update released by the Asian Development Bank(ADB) has shown how Bangladesh is the standout economy in terms of growth momentum in South Asia.
What did the report said?
- The report has said that Bangladesh has been experiencing high and consistently rising economic growth rate while maintaining a stable level of inflation.
- In 2016,Bangladesh has been growing at over 7% and in 2019 it is expected to cross the 8% threshold as well.
- On the other hand,India has seen a secular decline from 2016.The constant declining industrial productivity and sales suggests that the current financial year India is unlikely to get anywhere close to the 7%.
What distinguishes Bangladesh from India?
- The structure of Bangladesh’s economy is quite different from India.
- In India, the services sector contributes overwhelmingly but in Bangladesh there is a booming industrial sector.This allows its economy to create jobs.
- In India,the bulk of the population is still stuck in the agriculture sector, which contributes the least to the GDP.
- The industrial sector which has the maximum potential to absorb surplus labour from agriculture is struggling to grow fast enough and create employment.
- Further,despite the trade war between the US and China intensifying over the past year,Bangladesh’s exports have grown from 6.7% in 2018 to 10.1% in 2019.