Bangladesh’s economic health has rested broadly on three things being better managed—exports, remittances, and fuel prices. All of these have been badly hit in the polycrisis that has engulfed the whole world.
Deepanshu Mohan, Associate Professor of Economics and Director, Centre for New Economics Studies (CNES), Jindal School of Liberal Arts and Humanities, O.P. Jindal Global University, Sonipat, Haryana, India.
The roaring, enviable, decadal success of Bangladesh as one of the fastest-growing South Asian Economies has been well documented, discussed, and set as an example for developing nations across the globe.
Recent numbers though indicate a worrying trend for Bangladesh.
Poor export demand, high inflation, falling remittances, depleting forex reserves, and an energy crisis are swiftly affecting the economy’s fundamentals and might be taking it in the wrong direction.
Bangladesh has also sought financial assistance from the International Monetary Fund (IMF) of approximately USD 4.5 billion after Sri Lanka and Pakistan reached out to the IMF for bailout packages of USD 2.9 billion and USD 6 billion respectively.
What Contributed to Bangladesh’s Ailing Economy?
Other institutions like the World Bank and the Asian Development Bank too, are in the process of providing financial assistance to Bangladesh while talks are on between its government and the Japan International Cooperation Agency (JICA), the Asian Infrastructure Investment Bank (AIIB) for assistance. Let’s take a closer look at the state of Bangladesh’s economy, and its macroeconomic fundamentals, to get a sense of where it stands.
It has been well known that Bangladesh’s economic health has rested broadly on three things being better managed—exports, remittances, and fuel prices. All of these have been badly hit in the polycrisis that has engulfed the whole world.
Published in: The Quint
To read the full article, please click here.