Bangladesh to outperform Asian peers on economic recovery

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Bangladesh will probably recover faster than its Asian peers from the Covid-19 fallout because of bettering exports, growth in domestic intake and remittance inflow, according to a report of Standard Chartered bank.

In fiscal 2020-21, the economy will bounce back led by developing exports and remittance, that will also noticeably raise consumption, it said.

Anubhuti Sahay, brain of South Asia economics exploration of Normal Chartered Singapore, presented the results of the analysis titled "2021 Outlook: THE STREET to Redemption" at a virtual debate organised by the Bangladesh-German Chamber of Commerce and Sector (BGCCI).

The lender expects global growth to rebound to 4.8 % in 2021, she said.

Global trade has bounced back again but exports are yet to attain pre-pandemic levels, Sahay said.


Bangladesh is likely to be an outperformer found in the Asian place, according to her.

A good number of companies are shifting their manufacturing facilities from China to Bangladesh, she said.

Bangladesh will face some long-term challenges following its graduation from the least developed region (LDC) category by 2027, if the developed and growing countries usually do not continue extending the LDC conveniences to it, Sahay said.

For example, the LDCs enjoy 136 diverse sorts of international support measures, but after the country is graduated, those measures would be eliminated.

Bangladesh is likely to lose between 5.5 per cent and 7.5 per cent of its exports due to the economic graduation, she explained in the presentation.

Ministers, diplomats, businessmen of Bangladesh and Germany, trade body leaders and exporters took part in the dialogue moderated by Shahed Akhtar, executive adviser to the BGCCI.

Commerce Minister Tipu Munshi said a good high-powered trade delegation will go to Germany this year to increase bilateral trade and investment.

The minister invited German businesses to invest in Bangladesh's special monetary zones as the federal government is developing 100 financial zones across the country.

Germany is the only nation where Bangladesh's exports grew post-June 2020 and the majority of shipments was predicated on manmade fibre-based products, said Rubana Huq, president of the Bangladesh Garment Makers and Exporters Association.

She urged the German businesses to purchase local manmade fibre, polyester staple fibre and light engineering sectors as those are developing rapidly in Bangladesh.

The German economy is defined to rebound in 2021 and 2022, said Mustafizur Rahman, distinguished fellow of the Centre for Policy Dialogue.

"Bangladesh will also visit a rise found in export to Germany."

German investment in Bangladesh is low, he said, adding that the european country still has a huge option here and it will take steps to make proper make use of the preferential gain access to Bangladesh enjoys on the EU.

He also mentioned about establishing country-specific economic zones in Bangladesh, which can only help to increase foreign direct expenditure in the country.

When buying decreases in Germany, it impacts consumers' buying behaviour far away because Europe buys all together, said Syed Nasim Manzur, managing director Apex Sneakers.

He also mentioned that Bangladesh will certainly outperform and is already outperforming because of the bold leadership of the federal government and resilience of Bangladeshi workers.

On the other hand, he urged German small and medium enterprises to target more on the market segments of Bangladesh because they're missing an enormous trade opportunity.

Nasir Ezaz Bijoy, CEO of Normal Chartered Bangladesh, stressed the necessity for smooth export funding, introduction of export credit warranty scheme and aggregation of large project for faster restoration of Bangladesh.

Jan Moritz, managing director of Julius Hüpeden, discussed the way the coronavirus pandemic has damaged the buying behaviour of buyers and made a substantial downward style on apparel turnover.

Germany is the largest export destination of Bangladesh found in Europe, said Mosharraf Hossain Bhuiyan, Bangladeshi ambassador in Germany.

He also shed light on his meetings with various heads of the foreign trade departments, according to a statement of the BGCCI.

Some are approaching forward, as a good German garment maker is likely to establish a manufacturing plant interior Adamjee EPZ, Bhuiyan said.

He said there is immense chance to grow business between your two countries.  Marck Wengrzik, controlling director of AKA Export Credit rating; Christine Jordan, brain of structured export finance at Standard Chartered Bank AG; Zafar Sobhan, editor of the Dhaka Tribune; Javed M Ahmad, CEO of Aprosoft Boston, and Omar Sadat, BGCCI president, as well spoke.

Source: https://www.thedailystar.net

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