Corona: Economy at risk of declining remittances and garment exports

News Desk: The World Bank fears that Bangladesh's economy could be at risk due to the decline in remittances and ready-made garment exports. Economists believe that sending workers abroad will stumble and that remittances will continue to decline, creating a number of poor. However, this risk is temporary. They have suggested increasing the social security cordon to cut it.

The two main sources of foreign exchange earnings in Bangladesh are readymade garments and remittances. Remittances from more than one crore Bangladeshis living abroad contribute about 12 percent to the country's GDP. And more than 80 percent of the country's export income comes from the ready-made garment sector. Before the onset of the Corona epidemic, the second wave of infection hit these two sectors. The January issue of the World Bank's half-yearly report World Economic Outlook highlights the economic risks in these two sectors in Bangladesh.

The company predicts that Bangladesh's economy, as the world's second-largest exporter, will suffer as global demand for ready-made garments declines due to the epidemic. However, experts believe that the risk will not last long. Economist Ahsan H. Mansoor said there is a risk ahead of the next three months in terms of clothing. We do not want our factories to be closed for the next three months. The government can or should give some incentives for this. The economist said. Rashed Al Mahmoud Titumir said productivity needs to be increased and new markets need to be created.

But new poverty may be created. We have to think about how to reduce unemployment. Even during the epidemic, the pace of remittances in Bangladesh was upward and the growth rate was double digits. But an average of six to seven lakh people go abroad every year, but last year it was less than two lakh. The World Bank says the Corona epidemic could lead to business bankruptcy and unemployment and new poverty, as well as weakening the balance sheet of the financial sector, including banks.