Impact of Covid-19 on Economy - Coronavirus Impact on Bangladesh 2021

Impact of Covid-19 on Economy - Coronavirus Impact on Bangladesh 2021

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Although the coronavirus originated in late 2020, it spread around the world, including Europe and the United States, in February. On March 7, the first case of rabies was reported in Bangladesh. Gradually it spread. Its prevalence continues to this day. According to the government, the number of people infected with Kovid-19 in Bangladesh so far is more than 1.5 million and the number of deaths is more than 26,000. On the other hand, more than 15 lakh 10 thousand affected people have recovered.

The state of the country's economy continues to deteriorate due to public holidays and lockdowns. Although everything including education has been gradually opened up, the impact of several lockdowns and public holidays on the country's economy is still there.

The second-largest sector of Bangladesh's economy is remittances to expatriates. In the 2018-19 financial year, 10 million Bangladeshi workers working abroad sent ৮ 16 billion to the country. Saudi Arabia, Italy. And in many countries, including the United States, there is a risk of collapse in remittances due to the prevalence of tax evasion. Although it did not happen.

Fortunately, remittances to the family have increased, which is more than 24 billion in the 2020-2021 fiscal year. However, its far-reaching effects will be negative.

About 64% of our export earnings come from the garment industry. The industry employs about 4.5 million people. The survival of this industry depends largely on the markets of Europe and America. But many Western buyers cancel or suspend their orders due to the widespread transmission of coronavirus. It is worth টাকার 1.5 billion. Due to the fragile economic situation of other countries, the export flow has not returned to its previous level.

Although the GDP growth target for 2019-2020 is above 6 percent, it has been achieved at 5.24. Percent, which can be said to be satisfactory compared to global. The World Bank-IMF had set the GDP growth rate in Bangladesh at 4.40 percent in 2020-2021 and the government's expectation was 7.2 percent. However, Bangladesh has been able to achieve 5.6 percent. Which is satisfactory in global judgment.

According to the Bangladesh Household Income and Expenditure Survey, the poverty rate in Bangladesh could go up to 40.9 percent in 2005 due to Covid-19. Due to Covid-19, it is currently 20.5 percent. Researchers believe that the effects of poverty will be different due to the activities of different economies. Another group of researchers said that 43% of new poor people have emerged in Bangladesh who will be involved in various activities.

According to another statistic, the extreme poverty rate has increased by 60% and 14% of them have no food at home. According to statistics, 63% of lakes have lost their jobs due to general holidays and area-based lockdowns, and social distances. According to a BIDS survey, about 16 million people have become poor again. The rate of losing this job is much higher among the people of the non-agricultural profession. Moreover, the income of rickshaw pullers, industrial workers, restaurant workers, and day laborers has decreased a lot.

Informal and self-employed businesses, hotels and restaurants, public transport, air transport, tourism, etc. have suffered the most. Many have lost their jobs. The number or loss of employment is about 20 percent. The service sector was closed for a long time except for the daily necessities and emergency services. All types of services including tourism, hotels and restaurants, real estate was closed for a long time. The total loss of the service sector is thousands of crores of rupees.

It has also had a negative impact on the banking sector as all sectors have been closed for a long time due to the coronavirus infection. According to the Association of Bankers, Bangladesh (ABB), the annual income of each commercial bank will be reduced by Tk 150 crore. At present, many banks are struggling to pay their employees. Many banks have also decided to reduce their salaries, cut their staff, not hire new manpower and take compulsory retirement. However, the situation is becoming normal as economic activities return to normal.

Import-export of the country is an important regulator of the economic situation. Due to the recession in the country due to the tax, the import and export collapsed. In the fiscal year 2019-20, the import decreased by 7.56 percent. Outbreaks appear to be exacerbated by epidemics, high mortality rates, lockdowns, and business slowdowns. In the fiscal year 2020-2021, the gap between exports and imports is more than 23 million US dollars.

Bangladesh is a densely populated agricultural country in South Asia. Forty percent of the people in this country are directly involved in agriculture. But this sector was not spared from the outbreak of Kareena. Due to the lockdown, perishable goods have rotted due to lack of public transport and it has not been possible to export much abroad. As a result, thousands of crores of rupees have been lost.