Commerce minister fears export fall due to coronavirus outbreak
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Commerce minister Tipu Munshi in Sunday expressed his apprehension that the country’s exports might plunge if there is a widespread outbreak of coronavirus on the countries where Bangladesh sold its goods.
‘Our import from China has been hindered but there is an apprehension, if the economical activities of the countries, who get our goods, become slow as a result of widespread outbreak of coronavirus, Bangladesh’s sales will plunged,’ the minister told reporters following an event organised by the International Chamber of Commerce, Bangladesh at the Resort Intercontinental in the administrative centre.
It really is an apprehension however the circumstance is not in a way that buyers decreased their orders from Bangladesh,’ he said.
It is prematurily . to predict the damages and the federal government is observing the problem, the commerce minister explained.
In Bangladesh, three people were identified infected with COVID-19 down the road the day.
Tipu Munshi said that the federal government was trying to determine the damages Bangladesh would deal with as a result of coronavirus outbreak.
Replying to a question, the commerce minister stated, ‘It isn't right time to have any decision on support package for the firms rather we need to wait more to assess the true damages.’
He said that Bangladesh faced problem as a result of epidemic as more than 60 % of raw materials originated from China.
‘But it is very good news that the fee of coronavirus infection possesses started reducing in China and personnel possess started joining the task in factories. Ideally the situation will increase within a short time,’ Tipu Munshi said.
In December this past year the outbreak of the epidemic began in China, the solitary major supplier of industrial raw materials for readymade garment and different sectors of Bangladesh.
Later, the virus pass on to numerous countries in Europe, America and Asia, posing probable risk to the normalcy in global economic activities.
Earlier, exporters and authorities in Bangladesh apprehended that it could bring an enormous shock to the export revenue of Bangladesh if the virus became a global pandemic and was prolonged.
The cases of coronavirus infection are increasing in Italy, the US, Germany, France, Japan, Spain, holland plus some other countries.
‘It’s a subject of concern for Bangladesh as 63 % of country’s total export earnings come from European countries,’ Selim Raihan, executive director of South Asian Network on Economic Modeling, told MODERN on Sunday.
He said supplying chain disruption found in both the forward and backward linage usually takes place as a result of outbreak of coronavirus.
The International Monetary Fund predicted that the global financial growth would drop to half from the projection this year as a result of coronavirus outbreak.
Selim said that Bangladesh’s export earnings witnessed nearly 5 per cent negative expansion in eight a few months of the existing financial yr 2019-20 and the wages might lower more in the approaching a few months for the outbreak.
Based on the Export Advertising Bureau data, Bangladesh’s export income in the eight a few months of FY 2019-20 declined by 4.79 % to $26.24 billion from $27.56 billion in the same period of last fiscal year.
Earlier, Centre for Insurance policy Dialogue distinguished fellow Mustafizur Rahman told New Age that the World Lender and other international firms revised downward the global economical development projection for the existing fiscal year.
‘It is crystal clear that the global economy is heading towards a slowdown, though not recession, as trillions of dollar just destroyed from global stock market segments on concern with further spread of the virus.’
It would affect global economies, particularly export-oriented countries just like Bangladesh, if the COVID-19 virus even more spreads and prolongs, he said.
But, the glad tidings are that the pass on of the virus provides reduced in China, the foundation of the virus outbreak, said Mustafizur.
Actual effect on Bangladesh export is certainly yet to be assessed since it will depend on the developments encircling the outbreak, he reported.
Policy Research Institute executive director Ahsan H Mansur said that it would have an effect on Bangladesh’s export and the economy if the virus became a worldwide pandemic.
But, the most devastating influence Bangladesh would deal with if the virus pass on to Bangladesh seeing as global buyers could be fearful in which to stay the country, he said.
Globally all are in concern with a pandemic and afraid of huge shock to trade and economy due to new suspects in new countries, he said.
Source: https://www.newagebd.net