Bangladesh 9th strongest economy

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Bangladesh ranks ninth in a global league table of 66 emerging economies measured according with their financial strengths to deal beneath the strain of Covid-19 outbreak.

The Economist, a globally acclaimed magazine for economical and political analyses, positioned Bangladesh even before China, which includes been ranked 10th, for Bangladesh has fared relatively better in every indicators.

Botswana topped the list and it was followed by Taiwan, South Korea, Peru, Russia, the Philippines, Thailand and Saudi Arabia.

South Asian giant India ranked 18th, Vietnam 12th, Indonesia 16th, Malaysia 25th, Pakistan 43rd and Sri Lanka 61st.

The ranking examines the economies across four potential sources of peril -- public debt as percentage of GDP, foreign debt (both public and private), cost of borrowing and reserve cover.

In addition, it calculates their foreign payments owed by the countries this season (their current-account deficit plus their foreign-debt payments) and compares them with their stock of foreign-exchange reserves. A country's rank on each of these indicators is then averaged to determine its overall standing.

Bangladesh isn't weak when it comes to the four criteria.

The strongest countries, such as for example South Korea and Taiwan, are overqualified for the role of emerging markets, said the report titled "Which emerging markets are in most financial peril?"

Many bigger economies, including Russia and China, also appear robust. The majority of the countries that score badly across all of the indicators have a tendency to be small. The bottom 30 take into account only 11 percent of the group's GDP, and significantly less than 25 % of both its foreign and its own public debt, the Economist report said.

During the period of 2020, the 66 economies will need to find over $4trn to service their foreign debt and cover any current-account deficits.

Excluding China, the figure is $2.9trn. But this leaves out the buffers that emerging economies have accumulated. The governments hold over $8trn in foreign-exchange reserves.

Half have sufficient reserves to cover all their foreign-debt payments due this year and any current-account deficits, the report added.
Source: https://www.thedailystar.net

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