Bangladesh’s stable economic performance helped reducing poverty: ICCB President

Bangladesh recorded one of the fastest growth rates in the world in the past few years with a stable economic performance that has helped to reduce poverty and social inequalities, said ICC Bangladesh President Mahbubur Rahman.

Mahbubur said this while addressing the executive board at the 25th Annual Council of ICC Bangladesh held virtually on Monday, reports BSS.

Quoting ILO Report, Mahbubur said that Bangladesh is now battling both the pandemic and its economic fallout. “In such a situation, economic risks are not only limited to short-term, but also extended to major future productivity losses both through labour and capital.”

The economic crisis is likely to trigger a series of corporate and household debt defaults turning into a financial crisis as well, mentioned the ICC Bangladesh Report.

Like most other emerging economies, Bangladesh has to tackle a number of key issues in order to achieve the desired GDP growth, which includes healthcare, sustainable export, FDI and remittance flow.

In Bangladesh there are around 7.8 million enterprises and 90 percent of them are micro (including cottage) enterprises. This sector contributes around 25 percent to the GDP, amounting to around $79 billion.

“The high cost of doing business affecting the SMEs. Besides, many SMEs have been suffering tremendous setbacks in terms of production, marketing and sales. The SME sector generates 30 per cent of the total employment in the country as well,” said the ICCB President.

He mentioned that Bangladesh’s graduation from the LDC status by 2024 will lead to the loss of trade preference in major export destinations and loss of other preferences. “So, Bangladesh must focus on FTAs with major trading countries.”

The Executive Board Report also said the second wave of COVID-19 has already started in Europe and US which will further prolong the economic downturn.

Like most other emerging economies, Bangladesh will also be affected and will have to tackle a number of key issues in order to achieve the desired GDP growth, which include healthcare, sustainable export, saving MSMEs, sending back stranded expatriate workers to their workplace to maintain the remittance inflow and attracting more FDIs.

Besides, in order to maintain sustainable growth and to keep the supply chain functional and cost effective, it is very much important to save MSMEs (micro, small and medium enterprises).