Economy is under threat due to COVID-19: ICCB
The International Chamber of Commerce Bangladesh (ICCB) yesterday urged policy-makers to take the lead in bringing both public and private sector leadership together to tackle the spreading coronavirus.
The ICC Bangladesh said it believes that the country is in danger of not responding promptly and robustly enough to the impending challenges.
"Therefore, there is a pressing need for our government and businesses to agree on an overarching policy framework in the face of growing uncertainty and volatility," said Mahbubur Rahman, president of the ICCB, in a statement.
"Bangladesh in the past has demonstrated its ability and resilience in combating the aftermath of a natural calamity and we hope, we shall be able to overcome this impending danger together with courage and fortitude."
It is still too early to properly assess what damage the virus will have on the economy since the situation is evolving every day. Economic estimates can only provide a magnitude of the impact, the statement added.
The actual ramification will depend on the extent of the spread and length of the duration of the outbreak and how quickly policymakers can take action to mitigate the health and economic damage.
"We are resolute in our belief that only coordinated action will be effective in tackling a threat that, by its very nature, knows no borders," Rahman said, adding that economists are grappling and trying to predict the aftermath of this massive disaster.
"No one knows exactly what will come tomorrow and thereafter and how the society, government, healthcare and the economy will change."
It is obvious that the marginal and growing economies will be severely affected. Therefore, it is of great concern for Bangladesh as more than 70 per cent of its total export destinations are the US, The UK, Canada and EU countries.
Bangladesh's export earnings fell by 4.8 per cent in the first eight months of the current fiscal year to $26.24 billion from $27.56 billion in the same period of the prior fiscal year. This downward trend might exacerbate in the coming months in the face of wholesale cancellation of export orders.
The virus originated in China in December last year but has since spread to 167 countries.
China is Bangladesh's largest trading partner and the highest contributor to its supply chain, which feeds into both export and import production.
Thus, Bangladesh's economic activities may be hindered because of direct impact on production, supply chain and market disruption as well as impact on firms and financial markets. The financial sector, specifically the banking sector in Bangladesh, can be the most affected sector and remittance flow to the country is likely to slow down.