Maintaining the level of domestic demands during the extended shutdown period to tackle the spread of coronavirus would become a tough challenge for the authorities concerned. Newspapers reported that the ongoing shutdown has made 6.1 crore labour force almost jobless. Besides, it has forced thousands of small and medium enterprises to stay out of production. It also resulted in halving the supply of essential goods in comparison to its demand and created huge unemployment. Banning all modes of transports across the country also rendered thousands of workers unemployed. The government is already advised by experts to suspend the implementation of less important projects and use the funds to help the people to increase their purchasing power.
The government earlier had made projection in June 2019 that country to achieve 8.2 per cent growth in fiscal 2019-20. The closure of factories and businesses resulted in a supply-side shock and the subsequent layoffs will exacerbate the demand shock. It is feared that Bangladesh’s economy might lose 1.10 per cent of its GDP, or $3.02 billion, in addition to 8.95 lakh job losses due to the shutdown. The adverse impacts of the coronavirus have hit when almost major economic indicators — export, import and revenue income — excepting inflow of remittance were in a negative trend. As key sources of remittance in the Middle East have been also hit by the pandemic, the country received 11.83 per cent less remittance to $1.29 billion in March 2020 from $1.46 billion in March 2019. Falling remittance is a big blow for Bangladesh when the country is also facing capital flights.
The poor people will be the worst sufferers and the middle to lower-middle class people will become poorer by losing their jobs and other income-generating opportunities.
The poor people will be the worst sufferers and the middle to lower-middle class people will become poorer by losing their jobs and other income-generating opportunities.
