Outperformers: High-Growth Emerging Economies and The Companies That Propel Them (McKinsey)

Bangladesh’s standpoint and the take from the findings

Bangladesh in McKinsey’s Research

Sadly Bangladesh is not in the outperformers list of McKinsey but it has made a place in the list of ‘Middlers, which has a recent acceleration’. Dominican Republic, Ghana, Mozambique, Peru, Philippines, Poland, Rwanda and Sri Lanka are the countries that are in the same list with Bangladesh. Though the Middler threshold was between 0.95% and 3.5% compound annual growth rate over the period 1965 to 2016,very recent accelerators’ GDP per capita growth outpaced long-term outperformers’ which is more than 3.6% compound annual growth rate for the period of 2006 to 2016.
From McKinsey’s research three global trends has become visible that can be helpful for economy like Bangladesh-

 Rapid evolution with technology

 Rising consumption due to urbanization

 Growing South-South trade

In the research McKinsey has forecasted that Bangladesh can be one of the next outperformers soon considering different indicators. Bangladesh is in Quartile 1 of McKinney’s forecasting that achieved high GDP per capita growth and strong momentum on fundamental indicators since 2011, having the potential to join the next wave of outperformers.

 

 

New opportunities for Bangladesh in changing times

Some changes are necessary for Bangladesh to get the new opportunities to become one of the outperformers. These changes include shifting patterns of trade and other cross-border flows; changing demographics and rising urbanization, which will influence consumption and growth; and the increased adoption of automation technologies. This might be challenging some of the traditional development paths even as they potentially boost productivity and GDP growth. Plus increased global connectedness and openness to cross-border flows of goods, services, and finance has allowed the emerging countries to have the chance to become one of the outperformers.