Everyone hopes that the corona vaccine will alleviate the uncertainty of the world economy. Strong global stock markets are raising expectations. However, despite the recovery of the economy, inequality is expected to persist. May the new year be the year of passage.
Bangladesh has surpassed Pakistan in many areas of economy. In terms of gross domestic product (GDP), Bangladesh surpassed Pakistan two years ago, and per capita GDP surpassed three years ago. However, the latest data from the International Monetary Fund (IMF) says that the most important achievement of Bangladesh surpassing Pakistan will happen in the new year, 2021. That being said, the fact that Bangladesh’s economy is stronger than Pakistan’s can be said in this new year. Not only that, from then on Bangladesh will gradually move forward, Pakistan will continue to fall behind.
Quartz.com is a popular New York-based business portal. Like all other media, they have published reports on various estimates for 2021. In a similar report, Quartz said that the global GDP of 2021 will turn to Asia. Emerging and developing countries in Asia, such as China, India and Malaysia, will grow at 8 percent, while developed countries like the United States, Germany and Japan will grow at 3.9 percent. Bangladesh is one of the most representative countries in Asia leading the world economy. It is the only country in the world, which will grow by more than 2 percent this year, in 2020 and 2021. All in all, it is believed that this time Bangladesh will surpass the Pakistan in terms of per capita GDP, which declared independence from the country. And this will be one of the 5 big events of 2021 in terms of statistical surpass.
In search of information from the IMF
Quartz has released a chart, though it does not provide any further figures. So go to the IMF website for detailed information. The IMF released the World Economic Outlook last October. However, detailed statistics have been published very recently.
According to the IMF, Bangladesh will largely surpass per capita GDP on purchasing power parity (PPP). It is seen that the total GDP of Bangladesh in 1971 was 22.353 billion dollars. The per capita GDP was 263.606 dollars. On the other hand, on a PPP basis, the GDP was ৭ 46.105 billion and the per capita PPP GDP was দশ 555.617.
Let’s see the situation in Pakistan. In 1971, the country’s GDP was দশ 30.938 billion, per capita income was ৮ 364.902, PPP-based GDP was দশ 61.8 billion and per capita PPP GDP was ৮৬ 97.853.
Analyzing the statistics, it is seen that in the 30 years after independence, Pakistan’s position in many indices was double that of Bangladesh. Since then, Bangladesh has gradually reduced the gap. In terms of total GDP, Pakistan first lagged behind in 2019 and per capita GDP lagged behind in 2016. The country could not move forward from there.
However, in terms of per capita PPP GDP, Pakistan once lagged slightly in 2019, but moved forward again the following year. The IMF says that in 2021, Pakistan is falling behind again, and they are not able to surpass Bangladesh for the time being. That is what the forecast says until at least 2025. According to the data, in 2021, the per capita GDP of Bangladesh in PPP will be 5 thousand 652.239 dollars, and Pakistan will be 5 thousand 229.925 dollars.
Why PPP is most important
The real situation of a country with GDP per capita can never be understood. It is obtained by dividing the total GDP by the total population. The big problem is its distribution. Someone’s income may be much higher, others are somehow meeting basic needs. As a result, if the income inequality is high, the per capita income cannot be considered good or bad.
The best way to understand how rich a country’s citizens really are is to determine their purchasing power. That is, what he can buy with the money he earns. The prices of any product of one country will not match with another country. This is why the size of GDP is calculated on the basis of purchasing power parity (PPP) to compare the economies of different countries. Nominal GDP is converted to GDP in PPP dollars to compare the living standards of the people of a country. Bangladesh is surpassing Pakistan in PPP GDP per capita.
That information to surpass India
Farewell One of the most talked about issues of 2020 was Bangladesh surpassing India in per capita GDP. This was also the IMF’s estimate. In India, the field of economy and politics became heated with this. The IMF estimated that Bangladesh’s per capita GDP would be ৮৮৮ 1,006 in 2020, and India’s ভারতের 1,008. The main reason for this estimate was that India’s GDP growth in that year was negative or (-) 10.3 percent, and Bangladesh’s 3.8 percent.
This achievement of Bangladesh is for one year now. Because the IMF’s current estimate is that in 2021, India’s growth will be 7.8 percent, and Bangladesh’s 4 percent. The per capita GDP of India will be 2 thousand 30 dollars, Bangladesh will be 1 thousand 990 dollars. And the forecast for 2025 shows that India will go further. However, in the last one decade, Bangladesh has narrowed the gap with India. According to the data, in 2021, on the basis of PPP, India’s GDP will be 9,854.224 billion dollars, and Bangladesh will be 96.2 billion dollars. On the other hand, the per capita GDP of India in PPP is 7,918.63 dollars, while that of Bangladesh is 5,752.239 dollars.
Bangladesh became independent in 1971. At that time Pakistan was also far ahead in every field of economy. However, Bangladesh started surpassing Pakistan for three years. In the 50 years of independence, in 2021, that progress is going to get a new dimension, from then on, Bangladesh will move forward faster.
Mahbubur Rahman, Editor, Web News