According to a report of the International Monetary Fund (IMF), Bangladesh is all set to overtake India in terms of per capita gross domestic product (GDP). According to the International Monetary Fund’s World Economic Outlook, Bangladesh’s per capita GDP is expected to grow 4 per cent to $1,888 in 2020, while India’s per capita GDP is expected to fall 10.3 per cent to $1,877 – Which is the lowest in the last four years. The IMF has forecasted that India’s GDP may fall by 10.3 per cent this year.
The new IMF estimate for India is far below the forecast made in June, stating that emerging markets may see the biggest contraction due to the COVID-19 pandemic. According to the report released on Tuesday, this figure of GDP of both countries is based on current market prices. The IMF’s previous forecast in June said that production would be reduced by 4.5 per cent.
According to the World Economic Outlook report, India is poised to become the third poorest country in South Asia. Only per capita GDP of Pakistan and Nepal will be lower than India whereas countries like Bangladesh, Bhutan, Sri Lanka and the Maldives will be ahead of India.
However, the IMF has predicted that India could rebound as Asia’s third-largest economy with an impressive growth rate of 8.8 per cent in 2021. Thus by regaining the status of the fastest-growing emerging economy, India can surpass China’s projected growth rate of 8.2 per cent.
The ‘World Economic Outlook report has been released ahead of the annual meeting of the IMF and the World Bank. It said that the global economy will decline by 4.4 per cent in 2020 and it will achieve a strong growth of 5.2 per cent in 2021.
According to the report, in 2020, the economy of the US is expected to decline by 5.8 per cent, while in the next year it will grow by 3.9 per cent. During the year 2020, China will be the only country among the major economies of the world to register a growth of 1.9 per cent.