Retailers Cancel $1.5B In Bangladesh Clothing Orders Amid Coronavirus
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With the COVID-19 pandemic impacting demand, European and American buyers have called off roughly $1.5 billion of Bangladesh clothing orders. Bangladesh Garment Manufacturers and Exporters Association President Rubana Huq said on LinkedIn that up to at least one 1,089 clothing manufacturing facilities have seen orders become canceled, Bloomberg reported.
“I urge you all to kindly steer through this crisis together,” Huq said. “Let the production go on. In the event of urgency, we are able to accept deferred payment.”
The worldwide number of coronavirus cases has increased twofold within weekly, exceeding 300,000, with approximately 13,000 fatalities.
Although Bangladesh has only seen 27 cases, the called-off orders could greatly impact the economy. Garment factories employ a lot more than four million people, and the industry comprises about 13 percent of the country’s gross domestic product.
Bangladesh, which is reported to be the greatest exporter of clothing beyond China, has been making constant economic gains. Led by Prime Minister Sheikh Hasina, the country’s administration has supported policies which may have bolstered per-capita income.
Huq said, per the report, “Brands who were partners last month have all converted into strangers. We call upon the international community to surface with a renewed pledge to support the workers of Bangladesh, if not only the businesses.”
In separate news, the entire number of employment positions which will be lost due to COVID-19 stands at approximately five million, per one estimate. The economical shortfall could reach up to $1.5 trillion throughout the USA, per numbers forecasted by experts, and a recession is likely to occur.
The effects of the downturn could rival - and even exceed - those of the housing crisis from 2007 to 2009, which brought about a recession. JPMorgan Economist Bruce Kasman said the shock will be meaningful, and the impact will be felt for a matter of months.
Source: https://www.pymnts.com