BANGLADESH Bank warns in a report saying that danger lurks ahead for slower economic recovery as the second wave of Covid-19 is impacting the country and the global economic recovery. It said Bangladesh’s economic growth severely shrank from the beginning of this year as Covid-19 hit the nation pulling the growth at 5.24 per cent down in July-September quarter up from 8.2 per cent in the previous year quarter.
Bangladesh Bank has also warned that this lower growth and economy recovery may continue in the coming quarters at a time when the global economy is also facing severe backlash from the second wave disrupting business in Europe and USA – two major markets for Bangladesh’s exports.
It appears a new pandemic variant is further complicating the recovery efforts of the major economies when uncertainty about the effectiveness of the new vaccine is coming as no big help to combat the devastation. Senior economists believe vaccine will not be the panacea to give solution to the looming danger everywhere. Important is that people must be protected at home and work place by ensuring work place hygiene such as using masks, hand washing and keeping safe distance.
For Bangladesh RMG export is facing renewed backlash as many buyers are partially suspending RMG buying order or deferring shipments. L/C opening in textile sector fell by 3 per cent in November as export is facing new uncertainty when job market is similarly facing destabilization. The risk factor is only becoming stronger every day and we share the expert view that it is not enough for the government to have big stimulus packages but more important is to implement the recovery plans sector by sector. But we have a highly corrupt dysfunctional government and the poor leadership is impacting the recovery.
Some recent report said disbursement of stimulus packages for agriculture and cottage, small and micro enterprises were less than half of the target in November while recovery in the two sectors is more important to stimulate the overall economic recovery. Moreover the setback in the manufacturing sector must be properly addressed now more than going for a second stimulus package. It may only pave ways to money launderers. We must make sure the effective implementation of the existing funds to make economic recovery faster.
Bangladesh Bank has also warned that this lower growth and economy recovery may continue in the coming quarters at a time when the global economy is also facing severe backlash from the second wave disrupting business in Europe and USA – two major markets for Bangladesh’s exports.
It appears a new pandemic variant is further complicating the recovery efforts of the major economies when uncertainty about the effectiveness of the new vaccine is coming as no big help to combat the devastation. Senior economists believe vaccine will not be the panacea to give solution to the looming danger everywhere. Important is that people must be protected at home and work place by ensuring work place hygiene such as using masks, hand washing and keeping safe distance.
For Bangladesh RMG export is facing renewed backlash as many buyers are partially suspending RMG buying order or deferring shipments. L/C opening in textile sector fell by 3 per cent in November as export is facing new uncertainty when job market is similarly facing destabilization. The risk factor is only becoming stronger every day and we share the expert view that it is not enough for the government to have big stimulus packages but more important is to implement the recovery plans sector by sector. But we have a highly corrupt dysfunctional government and the poor leadership is impacting the recovery.
Some recent report said disbursement of stimulus packages for agriculture and cottage, small and micro enterprises were less than half of the target in November while recovery in the two sectors is more important to stimulate the overall economic recovery. Moreover the setback in the manufacturing sector must be properly addressed now more than going for a second stimulus package. It may only pave ways to money launderers. We must make sure the effective implementation of the existing funds to make economic recovery faster.
