Naorin Halim

Id 1111021030

Economy Of Bangladesh During Pandemic

The pandemic has reduced the vulnerable demographics' income source in Bangladesh. In fact,
according to the Bangladesh Economic Association (BEA) estimates, 25.5 million people had
shifted from vulnerable to poverty, to below the poverty line in July 2020. The government had
initially rationed food in response to the 25 per cent spike in price of potatoes and 13 per cent
increase in rice prices. Already reeling from India's' ban on onion exports, onion prices
skyrocketed in the midst of the pandemic too. The informal labor market comprises rickshaw
pullers and street vendors. Rickshaw pullers with dependent families are in a more precarious
situation as they are unable to return to their villages. With 4-12 million jobs lost permanently
and another 12-17 temporarily furloughed, spending in the economy has adversely impacted
small scale businesses in the informal sector. However, due to the pandemic earlier cash flows
into the economy sourced from remittance had been disrupted. However, it was the loss suffered
by the garments sector that really propelled the economy into a liquidity crisis garnering
international attention to the plight of the laborers whose livelihood were threatened by the
pandemic. The industry sector had to undergo furloughs during the shutdown. Therefore, the
prime ministers issued Tk. 300 billion stimulus packages comprising Tk 50 billion emergency
incentive packages dedicated specifically for garments sector. Government spending in this case
aimed to stabilize the liquidity shock that halted cash flows through the financial sector into the
garments sector by way of offering stimulus packages. On the other hand, welfare programs and
job diversification is provided for migrant workers and business in the informal sector.

The rate of GDP growth in Bangladesh is anticipated to have dipped to 3.8% in 2020. This
compares to 8.2% GDP growth recorded in 2019. While the world is reeling under an economic
crisis due to the Covid-19 pandemic, Bangladesh’s economy was able to escape a contraction in
2020 and its annual rate of GDP growth will continue to accelerate throughout the 2021-25
period, so says a think tank.

Between 2021 and 2025, Bangladesh’s annual rate of GDP growth will accelerate to an average
of 6.8%, forecasts the Centre for Economics and Business Research (Cebr) in an annual report
published.The London-based economic forecaster also stuck to its pre-Covid-19 assessment of
Bangladesh becoming the 25th largest economy in the world by 2035. 

Bangladesh has so far had a more contained Covid-19 outbreak than has been observed
elsewhere in the world. While the harm to public health inflicted by the pandemic has been
relatively limited, the effect of the outbreak on global demand and international supply chains
means that the economic damage has been considerable. Despite the Covid-19 pandemic, the
economy was able to escape a contraction in 2020.
 Assalamualaikum, I am Naorin Halim,ID 111121030,CSE 7th Batch,
I am going to present the topic
Economy of Bangladesh during Pandemic

The pandemic has reduced the vulnerable demographics' income source in Bangladesh.
With 4-12 million jobs lost permanently and another 12-17 temporarily furloughed,
spending in the economy has adversely impacted small scale businesses. Incoming foreign
remittance reduced. The industry sector been shut down. Therefore, the prime ministers
issued Tk. 300 billion stimulus packages and welfare programs comprising Tk 50 billion
emergency incentive packages dedicated specifically for garments and other industry
sector. and job diversification is provided for migrant workers and business in the informal
sector.

Bangladesh has so far had a more contained Covid-19 outbreak than other part of the world.
The economic damage has been considerable. The rate of GDP growth in Bangladesh was
dipped to 3.8% in 2020. But in the coming years, Bangladesh’s GDP growth forecasted
6.8% .Despite the Covid-19 pandemic, the economy was able to escape a contraction in 2020.