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The Fastest Growing Economy in the Asia-Pacific (APAC) is Driven by Export-led Growth, Robust Private Consumption, and High Volumes of Public Sector Investment
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South Asia is currently a hotbed of economic development. India has typically always been considered the main economic attraction of the region, but lately, Bangladesh has been establishing itself as a key attraction in the region. Bangladesh is now the fastest growing economy of the Asia Pacific. This research has been designed to provide insight into the factors leading to the stellar economic success of Bangladesh. A stable central government has played a key role in Bangladesh's economic growth. This research discusses the election manifesto of the ruling party, the vision of the political leaders and government officials, and the taxation, economic, and foreign trade policies of the government which have played a significant role in shaping the base on which the present Bangladeshi economy is built. The current political and economic stability has stimulated growth in the private sector with increased investments. To sustain the current growth trajectory, the government has introduced various policies and reforms to attract Foreign Direct Investment (FDI) particularly in infrastructure. The specific policies and reforms have been discussed in the research. A key factor that has contributed to Bangladesh’s growth is its competitive advantage due to the low-cost labor it makes available. However, recent events have led to stricter rules governing labor rights and minimum wage. How these issues impact the future growth prospect has been elaborated upon in the research. With regards to trade, the study discusses the impact information and communication technology (ICT) has had on the country’s economy. This research explores how Bangladesh is shifting towards ICT as an industry and how the government has planned its development with that in mind. The research also explores the attempts Bangladesh has made in diversifying its sources of energy and its gradual shift towards renewable sources of power. Other potentially lucrative sectors of investment with regards to revenue generation and future growth possibilities have also been discussed in this research.
Key Issues Addressed
Author: Prajuna K
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