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IMPACT OF COVID 19

in the Economy of Bangladesh


By THE INSURGENTS

Cases overview
Till 14th June 84.3K Cases Founded and 1139 Deaths has been Confirmed

Economic Growth
World Bank and the International Monetary Fund (IMF) have
expressed apprehensions about the economic growth that may slide down to just
over 2.0 % during the current fiscal year.

Poverty
Poverty rate in Bangladesh may rise to 40.9% if Covid-19 causes 25 % fall in
family incomes, according to the SANEM.

Till now, the Bangladesh readymade


garments (RMG) industry has received work
order cancellations of nearly $3 billion.

People like Hossain are also part of the


Around 2 million workers in the industries
informal sector, which accounts for almost 80-
will be affected by this. Around 4 million
90% of the jobs in Bangladesh. The pandemic
people are directly engaged with the RMG
has hurt them the most. Between March and
sector e.g. backward linkage industries,
May, the average family income subsided by
accessories and packaging factories and
as much as 74%
transportation sector.

We all know the banking industry is in back


gear due to mounting non-performing loans
(NPLs). If the RMG industry and its
backward linkage industries fail, then the Another study on national food security
entire banking system will collapse. Today, by BRAC revealed that during the 45-day
59 commercial banks and general lockdown period between March and
insurance companies are heavily relying May, the country's farmers faced a loss
on garments and related industries for their worth 565.36 billion taka (€5.9 billion,
business. $6.66 billion).

ECONOMY'S IMPACT ON COVID 19

If we look at the sector-wise resource distribution of


operating and development budget for the fiscal year 2019-20, we would see
the health sector has received merely 4.9% of the total allocation.
Meanwhile, the education and technology sector has received
15.2% allocation which is more than 3 times higher than the health sector
allocation. Due to poor investment in healthcare infrastructure nationwide and
scarcity of medical equipment i.e. testing kits, and doctors to combat
Covid-19, the government is passing a very hard time.

PLAN OF ACTION AND REALITY

72,750 Crore
On April 5, Prime Minister Sheikh Around 34 million people, or 20.5 % of the
Hasina unveiled a Tk72,750 crore population, live below the poverty line,
stimulus package, including the according to Bangladesh Bureau of Statistics
(BBS) data. An analysis by Dhaka-based South
previously declared Tk5,000 crore
Asian Network on Economic Modelling
package, to address the economic
(SANEM) shows that this number would rise by
impacts of the coronavirus outbreak. 36 million if the income level for poverty line is
The raised by 1.25% These 36 million, not officially
amount is nearly 2.52 % of the countrys categorised as poor, can certainly be viewed as
GDP. The government could take economically powerless. Many of them are
both fiscal and monetary measures to likely to fall into poverty trap because of the
combat the novel coronavirus. pandemic.

zawad.hasan5957@gmail.com
ID 36219998WF5

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