Per capita income shows the quality of lifestyle of people in a specific region. It talks about the amount of money a person earns in a state or country. Countries with high per capita income are known as the developed countries. This is because the lifestyles of the people of those countries are better than others. They get more facilities than others as well. Bangladesh is known as a developing country, and the per capita income of Bangladesh is increasing gradually. In this article, we will discuss Bangladesh’s per capita income and other relevant facts.
How to Measure Per Capita Income?
If we divide the whole national income by its population, we will get the amount of per capita income. Suppose country “A” has a population of 140,000 people, and its annual income is 28,000,000. So, the per capita income of that country is 200. In that way, per capita income of Bangladesh is also calculated.
Per Capita Income of Bangladesh
As a developing country, Bangladesh is increasing its per capita income every year. It is an excellent sign that a country has good economic growth. In the 2020-2021 fiscal year, the per capita income is USD 2,227, which was USD 2,064 in the 2019-2020 fiscal year.
The growth is 9 percent. Despite the Covid issue, the Per Capita Income of Bangladesh is satisfactory. In the 2019-2020 fiscal year, Bangladesh had the lowest growth of per capita income in 12 years, and it was only 5.24 percent. The lowest growth of Per Capita Income of Bangladesh occurred in the 2008-2009 fiscal year, which was only 5.05 percent.
In this graph, you will be able to know the increase and decrease of per capita income from the year 2005 to 2020. The main reason behind the drop in per capita income in 2019-2020 was the Covid-19 situation. This pandemic has stooped the world for many days, which has affected the global and internal economy a lot.
Why is the Per Capita Income Important?
To measure per capita income, it counts every member of the country, such as man, woman, children, and even newborn babies. It is easy to say and assume that you will lead a happy and healthier life when you have a high per capita income. You will have the independence to make decisions as your own. High per capita income also indicates the economic growth of a certain country.
Per capita income is also an indicator of the international economy. It helps to know the condition of a nation. Though there are some limitations of per capita income, such as it does not show the savings and wealth of an individual, it includes children, but children do not earn money and many other controversial things.
Conclusion
There are many limitations, but per capita income is one of the essential indicators of the economy. The Per Capita Income of Bangladesh is still in a good ratio because of the government’s sincerity. Many developed countries have dropped their per capita income in this pandemic. Bangladesh is still fighting against the pandemic and trying to maintain its economy.