New Delhi: Bangladesh is set to leave India behind in terms of per capita Gross Domestic Product (GDP) this year for its sharp downfall in the Indian economy due to Covid-19 lockdown.
Bangladesh’s per capita GDP , in dollar, is expected to grow 4% to $1,888 in 2020 whereas India’s per capita GDP is likely to decline 10.5% to $1,877 – lowest in the last four years, making India the third poorest country in South Asia, after Pakistan and Nepal, while Bangladesh, Bhutan, Sri Lanka, and Maldives are likely be ahead of India, as per the International Monetary Fund (IMF).
In comparison, Nepal and Bhutan are expected to grow their economies this year.
A sharp economic recovery in India next year is predicted by IMF, likely to push per capita GDP ahead of Bangladesh in 2021 by a small margin.
India’s per capita GDP, in dollar, is expected to grow 8.2% in 2021, against 5.4% growth for Bangladesh which will grow per capita GDP to $2,030 next year, against Bangladesh’s $1,990.
Five years ago, India’s per capita GDP was nearly 40% higher than that of Bangladesh. It’s per capita GDP has grown at a compound annual growth rate of 9.1%, against 3.2% growth of India during the period.
Bangladesh’s economic growth was supported by its fast-growing export sector and a rise in rate of savings and investment in the country while India’s exports have come down in recent years and savings and investment declined.
India’s economic shrink in 2020 will be its worst since the 1990-91 economic crisis when the per capita GDP had contracted 17.5%, according to the WEO database.