C T Online Desk: Bangladesh’s burgeoning digital economy exhibits several impressive indicators, notably its rapid growth in internet penetration, according to an internationally acclaimed economist.
“The number of internet subscribers in Bangladesh reached 131 million in 2023, a substantial increase from 91 million in 2018. Moreover, Bangladesh’s e-commerce sector is flourishing rapidly. Projections indicate that by 2026, the e-commerce market is expected to surpass Tk1.5 trillion, more than double its size from 2021,” Bali Kaur Sodhi, Lead Economist at Oxford Economics in Singapore, said during an online interview with the Daily Sun.
Prior to her tenure at Oxford Economics, Sodhi spent nearly 5 years at the Ministry of Trade and Industry in Singapore, where she held the post of senior economist.
Recognising the potential of the digital economy, Bali Sodhi said that the Bangladesh government has several initiatives in place, such as the development of two digital economy hubs to catalyse the growth of the tech industry.
“Further, there is a focus on promoting digital literacy and innovation, alongside investments in infrastructure and technology. This highlights the desire to have inclusive and citizen-centric development, which can reduce the digital divide, especially the gap in mobile internet use between women and men,” she said.
Such measures remain important to enable a wider pool of the population to participate in the economic growth of Bangladesh, according to the distinguished economist.
The Singapore-based economist recently conducted research on ‘ride hailing as a platform for women’s economic opportunity in Bangladesh’.
“A high share of women riders in Dhaka (upwards of 85%) value the tech-enabled safety features offered by ride-hailing apps. This is more so than men. At the same time, nearly nine out of 10 women who use ride-hailing to work said they do so as it is a safer option than alternative modes,” said Bali.
The economist seems optimistic about the growth of the Bangladeshi economy over the last decade.
“Bangladesh’s inflation last year reached a record high level not seen since the early 2010s. Oxford Economics’ forecasts indicate these inflationary pressures are likely to stay, given the weak taka and higher food prices, thereby impacting household incomes and private consumption. Such factors can weigh on the short- to medium-term outlook of the economy,” she said.
The researcher at Oxford Economics believes that such a growth environment will enable more women to work, which could be transformational for household incomes and Bangladesh’s wider economy.
“If the existing ride-hailing services facilitate women’s journey to work and can encourage more women in Bangladesh to join the labour force, these services could play a promising role in boosting real household income, encouraging private consumption demand, and contributing to the nation’s economic growth,” Bali concluded.
Bali holds a Bachelor of Science in Economics from Singapore Management University, where she graduated Cum Laude and was listed on the Dean’s List in 2010.
She furthered her academic pursuits with a Master’s degree in Economics from Boston University, again graduating Cum Laude. Bali’s academic journey also included a semester as an exchange student at Tilburg University.
