Recently IMF released their Economic Outlook and Bangladesh crossed India in GDP per capital
The International Monetary Fund released the World Economic Outlook on Wednesday. The 2020 estimation gave shocking results; India’s gross domestic product (GDP) in upcoming years is going to face compaction of 10% i.e. more than the last time that was 4.5%.
Contraction aside, everyone was shocked after monitoring that per capita income of every Bangladeshi would be more than that of Indian
When it comes to comparison of economy to factors plays a role either GDP growth or absolute GDP. Ever since we got Independent, India’s economy has always been better than that of Bangladesh. Precisely India’s has been 10 times more than Bangladesh and has increased.
Per capita income also includes the overall population, so it also comes as a factor why there is a leap.
Bangladesh's economy has been increasing ever since 2004. However, alongside up to 2016, India has maintained the difference as India grew even faster than Bangladesh. With the onset of 2017, India went down with a good margin and Bangladesh have seen its biggest hype. Not only this India’s population increased by 21% while Bangladesh's at 18%.
Combined these two factors we have seen the biggest hit before even the onset of Covid-19 the GDP gap had closed considerably. In 2007 Bangladesh’s per capita GDP was merely half of India’s bit as we had global financial crises. Things changed. It crossed roughly 70% of India’s in 2014 and this gap closed rapidly in the last few years.
Lastly, the most immediate factor was the relative impact of Covid-19 on the two economies in 2020. While India’s GDP is set to reduce by 10%, Bangladesh’s is expected to grow by almost 4%. In other words, while India is one of the worst affected economies, Bangladesh is one of the bright spots
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