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Current Affairs

IMF data on per capita GDP

Date: 16 October 2020 Tags: Reports & Indices

Issue

The IMF’s latest projection has shown that Bangladesh will surpass India in per capita GDP in 2020-21 fiscal year. This will make India’s per capita GDP third lowest in south Asia after Pakistan and Nepal.

 

Background

 The IMF has projected the Indian economy to contract 10.3 percent in 2020-21, a deeper hit than the June estimate of 4.5 percent contraction in the wake of the economic slump due to Covid-19 pandemic.

 

Details

  • Global growth is projected to contract 4.4 percent, an upward revision of 0.8 percent from its June update, the IMF said.

  • The Reserve Bank of India has projected a 9.5 percent contraction for the Indian economy in 2020-21.

  • India’s per capita GDP, in nominal US dollar terms, is projected to be $1,876.53 in 2020, lower than $1,887.97 projected for Bangladesh.

  • On average, India’s per capita GDP has been 24 percent higher than Bangladesh’s during the last five years.

  • After a blip however, India’s per capita GDP is expected to overtake Bangladesh’s per capita GDP in 2021, with the IMF projecting it to be $2,030.62 as against $1,989.85 of the latter.

  • However, the trend is not expected to sustain for long as India’s per capita GDP is then again expected to slip below Bangladesh’s per capita GDP in 2024 to $2,544.26 as against $2,544.32.

  • In 2025, India’s per capita GDP is projected to be $2,729.24, again lower than Bangladesh’s projected per capita GDP of $2,756.10

  • Government sources have said that in terms of purchasing power parity, India’s per capita GDP was 11 times higher than that of Bangladesh in 2019.