WELCOME TO THE

PRESENTATION
PRESENTATION TOPIC:
Changing Pattern of Economic Interactions of Bangladesh with Rest of the
World during Covid-19
PRESENTED BY
NAME ID
ENAMUL HOQUE 801928034
SAJIB CHANDRA ROY 801928036
WASIM AKRAM 801928037
MARINA JAHAN JABIN 801928041
MARWA ZAMAN 801928047
JAHID HASAN SUMAN 801928053
Background:
• Coronavirus disease 2019 (COVID-19) is a contagious disease caused by severe acute
respiratory syndrome coronavirus 2 (SARS-CoV-2). The first case was identified in Wuhan, China,
in December 2019. It has since spread worldwide, leading to an ongoing pandemic.

• Symptoms of COVID-19 are variable, but often include fever, cough, fatigue, breathing

difficulties, and loss of smell and taste. Symptoms begin one to fourteen days after exposure to
the virus. Around one in five infected individuals does not develop any symptoms.

• Preventive measures include social distancing, quarantining, ventilation of indoor spaces,

covering coughs and sneezes, hand washing, and keeping unwashed hands away from the
face. The use of face masks or coverings has been recommended in public settings to minimize
the risk of transmissions. There are several vaccine candidates in development, although none
has completed clinical trials.

• Although work is underway to develop drugs that inhibit the virus, the primary treatment is
currently symptomatic. Management involves the treatment of symptoms, supportive
care, isolation, and experimental measures.
COVID-19 in World:
• Globally in the past week, cases of COVID-19
have remained at approximately 4 million
new cases, while new deaths have continued
to increase to over 73 000. This brings the
cumulative numbers to over 65.8 million
reported cases and 1.5 million deaths globally
since the start of the pandemic.
• The virus that causes COVID-19 is mainly
transmitted through droplets generated
when an infected person coughs, sneezes, or
exhales. These droplets are too heavy to
hang in the air, and quickly fall on floors or
surfaces.
COVID-19 in Bangladesh:
• The COVID-19 pandemic in Bangladesh is part of the worldwide
pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute
respiratory syndrome coronavirus 2 (SARS-CoV-2). The virus was confirmed
to have spread to Bangladesh in March 2020. The first three known cases
were reported on 8 March 2020 by the country's epidemiology
institute, IEDCR. Since then, the pandemic has spread day by day over the
whole nation and the number of affected people has been increasing.
Impact of COVID-19 in World Economy:
• In the March 2020 OECD Interim Economic Outlook, the
downside scenario saw global growth halved to 1.5%. That
was optimistic. The most recent estimates in the June 10
OECD Economic Outlook suggest an unprecedented collapse
in the first half of 2020 – an almost 13% decline in global
GDP.

• Statistics for some of the major economies further reinforces

the bleak picture for international trade. First, most recent
trade figures indicate further deterioration in April and May.
Second, except for the first two months of 2020, China
appears to have fared better than other major economies. In
fact, China’s exports grew by 3 percent in April. Still, most
recent data for China indicates that such recovery may be
short-lived as imports and exports fell by about 8 percent in
May. Third, intra-regional trade appears to have declined to a
much lower rate for countries in the East Asian and Pacific
Regions. For the European Union intra-regional trade has
declined at a similar pace as overall trade. On the other hand,
United States’ statistics indicate a much stronger decline of
intraregional trade.
Global trade at the various sector levels:
Economic disruptions brought by COVID-19 have affected some sectors significantly more than others. In the first quarter
of 2020, textiles and apparel declined by almost 12 percent, while office machinery and automotive sectors have fallen by
about 8 percent. On the other hand, the value of international trade in the agri-food sector increased by about 2 percent.
Preliminary data for April indicates further declines in most sectors and a very sharp contraction in trade of energy and
automotive products, about -40 percent and -50 percent in values respectively. Significant declines are also observed in
chemicals, machineries and precision instruments with drops above 10 percent.
 IMPACT OF FUTURE ECONOMY
• Covid-19 has caused widespread economic damage, with long-term
implications for global supply chains, productivity growth, and sovereign
debt. The growth rate of world economy already fall down, to comeback
from this economic disaster , long term policy is required.
 COVID-19 impact in Bangladesh economy:
• Global and local demand for manufactured goods, particularly in the garments sector, will affect private sector
growth and government’s focus in managing the COVID-19 pandemic is expected halt public sector projects.
Hence, based on the economic disruptions following the pandemic, GDP growth forecast of Bangladesh by
IMF, WB and ADB has been revised downward from 7.8%-8.2% to a range of 2.0% to 3.8% for FY’20. We
project export to fall by 15.4%, import to slow down by 11.8% and remittance to grow at 6.0% in FY 20.
• Fiscal stimulus worth BDT 1,029.6bn and various non fiscal stimulus has been announced to tackle the
economic fallout of the coronavirus pandemic. However, efficient implementation of the fiscal stimulus will be
a key challenge.
EFFECT ON INFLATION
In this pandemic situation , economic activities fall down. Export, import
activities are not sustainable that cause a great impact on inflation rate of
Bangladesh . Before this pandemic inflation rate was 5.5% but in pandemic
situation it grownup every month . In October, 2020 Bangladesh face the
height inflation rate 6.44% which make a great impact on our economy.
 IMPACT OF BANKING AND INSURANCE SECTOR IN BANGLADESH

The banking sector was already struggling prior to the COVID-19 situation from skyrocketing Non-Performing loans, declining margins in a capped interest rate
regime, deteriorations in various efficiency indicators, government directed restructuring of loans, declining demand for loan able funds, etc. Now, the pandemic
has put the sector into further stress.
The funds from the stimulus package will be distributed through the banking channel; while
both credit and collection risk will lie with the banks.
High cost to income ratio (78%) in the banking sector with a sudden pandemic shock made the
banks ripe for cost efficiency developments. Cost rationalizations and layoffs in banking sector
may come up with an endeavor to increase efficiency but if done in biased/ weak governance
framework, it may leave the sector demoralized.
The revenue stream of insurance industry is suffering badly due to COVID-19 pandemic. Due to
COVID-19 fire and marine insurance are expected to take the biggest hit. These two components
consist of around 77% of non-life insurance companies total premium income.
 IMPACT ON TEXTILE INDUSTRY

Textile industry ins one of the most valuable industry in Bangladesh to earn foreign revenue. The Covid-
19 pandemic has completely derailed the textile industry from its growth trajectory. From March 2020
to May 2020, RMG exports fell by 54.8% to USD 3.7bn from USD 8.2bn over the same period of 2019.
During this time, 1,150 factories reported order cancellation/suspension of USD 3.18bn which impacted
around 2.28mn workers in the industry.
 IMPACT ON POWER SECTOR
• Bangladesh has excess power generation capacity that results in growing capacity payments every year. Overall
power capacity utilization in Bangladesh for 2018-19 was just 43%, while capacity payments to idle plants
reached ~BDT 89.3bn in 2018-19. Now, the pandemic driven slowdown in economic activities is likely to further
lower energy demand and worsen the excess capacity situation. Many of the power generation and distribution
companies are likely to witness significant fall in their topline even with capacity payments, some will face
business continuity risk from non-renewal of rental power agreements.
 IMPACT ON CEMENT AND STEEL SECTOR
Cement and Steel producers in Bangladesh made aggressive expansion over the past few years with the aim of
supplying to the government for its megaprojects, meeting the rising consumer demand and exporting to
neighboring countries. Now, with the advent of the Covid-19 pandemic all activities in the construction industry
has come to a grinding halt. With the prospect a prolonged demand slump, broken cash cycle from high credit
sales and high debt burden industry players are likely to find it impossible to survive without government
assistance.
 IMPACT ON PHARMACEUTICAL SECTOR
• The pharmaceutical industry is among the least effected by the pandemic disruption but the industry’s
supply chain has been stretched dangerously thin. The industry imports over 97% of its raw materials;
however, trade with importing countries has been severely restricted since the start of the pandemic. If
this persists, drug producers may have to shift to expensive import destinations which will eat into their
profit margins.
CONCLUSION
COVID-19 affected our life by physically, mentally also economically.
We have to carry this situation until the proper vaccine invented and
spread all over the world. Hope so the economic barrier which have
been imposed due to covid-19 all will be open one day and world will
find its own path to move.