ADB tasks losses for Bangladesh
Image: Bizbangladesh.net
The impact of the coronavirus outbreak on the Bangladesh economy will be limited by 0.01 per cent of its gross household merchandise in a moderate to worse-case scenario, relating to an research of the Asian Development Bank.
The Manilla-based ADB on Friday released the analysis report titled ‘The financial impact of the COVID-19 outbreak on developing Asia’.
The analysis said that Bangladesh’s monetary losses would be equal to $ 8 million in the best-case, $16 million in a moderate-case and $30 million in a worse-case scenario.
People which range from 2,000 to 7,000 could also lose their jobs on the best-case to worse-case scenarios, the article said.
The multilateral agency also projected a hypothetical worst-case situation in which the Bangladesh economy might lose 1.10 % of its GDP or $ 3.02 billion if a substantial outbreak occurs in the united states.
The size of Bangladesh’s GDP was $274 billion in 2018.
In the hypothetical worst-case scenario, 8.95 lakh persons will eventually lose their jobs as a result of coronavirus impact.
According to the report, the COVID-19 situation could have a significant impact on the regional economies in various ways, incorporating through sharp declines in the household demand, decreased tourism and organization travels, loss of trade and development linkages, supply disruptions and well being effects.
The magnitude of the financial impact will rely upon the way the outbreak evolves which remains highly uncertain, it said.
The range of scenarios explored in the analysis suggests a worldwide impact of $77 billion to $347 billion or 0.1 % to 0.4 % of the global GDP.
Some two-thirds of the impact would fall on China from where in fact the outbreak has originated and concentrated up to now, a prediction said.
According to the analysis, economic losses of Bangladesh might be usually in the industrial and service sectors due to disruption in the supply and decline in the amount of tourists.
Of each 100 international tourists visiting Bangladesh, four result from China.
The fall in the tourism earnings of Bangladesh was assumed to be ranging from $3.1 million to $9.4 million.
Though Bangladesh’s total export as the share of its GDP is quite insignificant, the country’s global value chain exposure is more than 1 per cent, according to the analysis.
Source: https://www.newagebd.net
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