COVID-19 threatens Bangladesh economy: ICCB

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The World Health Organization (WHO) officially declared the coronavirus (COVID-19) outbreak a worldwide pandemic on March 11 this season, which includes now spread to 170 countries and territories and infected over 330,000 people.

This number will not adequately show the scale and magnitude of the global crisis, which isn't just linked to public health but also to the fitness of the global economy, said a press statement issued by the International Chamber of Commerce, Bangladesh (ICCB) on Monday afternoon.

“Economists are grappling and trying to predict the aftermath of this massive disaster,” said the statement. “No one knows exactly exactly what will come tomorrow and thereafter and the way the society, government, healthcare and the economy will change.”

Signed by Mr Mahbubur Rahman, president of ICC Bangladesh, in addition, it said: “It is clear that the marginal and growing economies will be severely affected. Therefore, it is of great concern for Bangladesh as destinations greater than 70.0 % of the country’s total export are USA, UK, Canada and EU countries.”

The statement mentioned that Bangladesh’s export earnings fell by 4.80 % in the first eight months of the existing fiscal year (FY20), to $26.24 billion from $27.56 billion in the same amount of the past fiscal year.

In addition, it expressed concern that downward trend may exacerbate in the coming months when confronted with wholesale cancellation of export orders.

“Alternatively, China is Bangladesh’s major trading partner and the best contributor to its supply chain, which feeds into both export and import production,” the statement added.

“Thus, Bangladesh’s monetary activities may hinder as a result of direct effect on production, supply chain and market disruption together with impact on firms and financial markets,” continued the ICCB statement.

It also expressed concern that the financial sector, especially the banks in Bangladesh, could possibly be the most damaged and Bangladesh’s remittances will probably slow down.

“It is still prematurily . to properly determine what damage the virus could have on the Bangladesh economy, because the situation is evolving each day, economic estimates can only just give a magnitude of the impact,” said the statement.

“The actual ramification will be based upon the extent of the spread and amount of the duration of the outbreak and how quickly policymakers can take action to mitigate the health and financial damage,” it added.

Against the background, ICC Bangladesh believes the united states is in the threat of not responding promptly and robustly enough to the impending challenges. 

“Therefore, you will find a pressing need for our government and business to agree on an overarching policy framework when confronted with growing uncertainty and volatility,” said the president of ICCB in the statement. “We are resolute in our assume that only coordinated action will succeed in tackling a threat that, by its very nature, knows no borders.”

“We, therefore, urge the policy makers to take the lead in bringing both public and private sector leadership together to get this outcome,” said Mr Mahbubur Rahman in the statement. 

“Bangladesh in the past has demonstrated its ability and resilience in combating the aftermath of an all natural calamity and we hope we shall manage to overcome this impending danger as well as courage and fortitude,” the statement added.
Source: https://thefinancialexpress.com.bd

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