Bangladesh set to overtake India in terms of GDP per capita by 2030: Standard Chartered Bank

[TopCat]

Btw, can you quote me PPP /capita for Bangladesh too? I mean if the growth rate numbers are not fudged why is it, that interms of purchase power parity Bangladesh still lacks behind Pakistan/India?

there are many items specially imported items are very expensive in BD. As local production is popping up so is the price going down. PPP factoring will also comes down as we progress.. In 2011 PPP factor was revised in favor of BDT.

 

[Chhatrapati]

Good if you can do that.

With no ongoing conflicts, it's only natural such countries develop. All the best.

 

[Death Professor]

there are many items specially imported items are very expensive in BD.

Not taking about BoP here, import/export has to with BoP issues.

As local production is popping up so is the price going down.

Again this is related to inflation. Though the average inflation rate of Bangladesh for previous year has been lower than Pakistan but overall inflation is still higher in Bangladesh compared to Pakistan.

 

[UKBengali]

Don't know, I am not an economist and have little understanding of economics. I rely on the experts who regularly give relatively good news about performance of BD economy.

You can ask that question to other BD members who are more knowledgeable in economics.

@TopCat @UKBengali @Bilal9 @Homo Sapiens

@Death Professor

Yes as BD currency value is higher compared to living standards due to factors like relatively high exports, good fiscal policies etc.
Saying that there is less than 1K per capita difference between BD and Pakistan now and it looks like BD will surpass in per capita Ppp by 2021-2022 if current growth trends are maintao

 

[Bengal71]

Good if you can do that.

With no ongoing conflicts, it's only natural such countries develop. All the best.

It will be good for both India and BD. Even if we do overtake I don't think it will be by much. So in this region, if India and BD can maintain peaceful co-operation, a lot of prosperity to be had.

 

[TopCat]

Not taking about BoP here, import/export has to with BoP issues.
Again this is related to inflation. Though the average inflation rate of Bangladesh for previous year has been lower than Pakistan but overall inflation is still higher in Bangladesh compared to Pakistan.

I dont know if you understand PPP correctly. Inflation do affect PPP but not the basis of it.

 

[Chhatrapati]

It will be good for both India and BD. Even if we do overtake I don't think it will be by much. So in this region, if India and BD can maintain peaceful co-operation, a lot of prosperity to be had.

Yep, like I've always said, when the countries in the region develop, it's development for all. If a country bordering you is in trouble, then that'll spill over to you as well.

 

[Death Professor]

I dont know if you understand PPP correctly. Inflation do effect PPP but not the base of it.

I guess you understand more that's why you are linking it with Balance of Payments. You do realize Pakistan has much grimier BoP issues? but we have lower inflation and better PPP compared to Bangladesh. Same is the case with India their BoP is -70B $ if I remember right, also they have better inflation and PPP compared to Bangladesh.

 

[TopCat]

Yep, like I've always said, when the countries in the region develop, it's development for all. If a country bordering you is in trouble, then that'll spill over to you as well.

Thts right... If BD grow so it will pull entire Eastern India. West Bengal is growing very fast these days due to increased business from Bangladesh. 1000s of trucks loaded with stone chips entering BD every day and business goes to west bengal. Its just one example.

I guess you understand more that's why you are linking it with Balance of Payments. You do realize Pakistan has much grimier BoP issues? but we have lower inflation and better PPP compared to Bangladesh. Same is the case with India their BoP is -70B $ if I remember right, also they have better inflation and PPP compared to Bangladesh.

it does not matter what your BOP is.. PPP is based on what end customer pays in relative to US dollar. Due to high import duty there are some products like car, alcohol, cosmetics, lady clothe are very expensive. But food items, clothes, education, health which actually matters are of the same price as India

 

[Chhatrapati]

Thts right... If BD grow so it will pull entire Eastern India. West Bengal is growing very fast these days due to increased business from Bangladesh. 1000s of trucks loaded with stone chips entering BD every day and business goes to west bengal. Its just one example.

This is classic supply and demand, few years back the development in North East or the East was lacking. Now when the demand goes up, there will be need for more raw materials and the cheaper way will be from Neighbors. This way they too gets a share.

 

[Pandora]

Bangladesh set to overtake India in terms of GDP per capita

Yeah come back in 2030 and we will talk about it. Nowadays it is impossible to predict events of next year and you are talking about 2030. Indian economy has stability and strong base to support its growth whereas Bangladeshi economy is dependant on Indian economy. If india grows you will grow as well if they dont you will collapse as well.

 

[Bengal71]

Yeah come back in 2030 and we will talk about it.

Yes no worries. Now it's the prediction based on data, we can revisit in 2030 and see if the predictions were true. That of course if I live till then.

 

[Death Professor]

PPP is based on what end customer pays in relative to US dollar. Due to high import duty there are some products like car, alcohol, cosmetics, lady clothe are very expensive. But food items, clothes, education, health has with actually matters are of the same price as India

So, yes we and India doesn't export those. And yeah there is no import duty on those here in Pakistan, and to you what end customer pays has nothing to do with inflation.

Btw, just want to correct, I was talking about Balance of Trade, not balance of payments, just a mistake on my behalf. But feel like I am wasting time, you live in your delusion and be happy, 2030 SUPA POWA bangla.

 

[TopCat]

Bangladeshi economy is dependant on Indian economy. If india grows you will grow as well if they dont you will collapse as well.

Where did you come up with this theory?
BD grew very fast even at the time of global and Indian slow down in 2008 onward. BD's growth has nothing to do with India. We dont export much there.

 

[Neptune_]

Yep, like I've always said, when the countries in the region develop, it's development for all. If a country bordering you is in trouble, then that'll spill over to you as well.

Excellent post.