There is a saying that when America sneezes, the whole world gets flu. Bangladesh is surrounded to what transpires in international markets and economies of leading countries. While America with its $13 trillion economy where Bangladesh's is around $70 billion dollars in GDP. Bangladesh cannot be immune from the global economic slowdown and is most likely to be adversary affected sooner or later. In the industrialized states, it has already reported that the retailer is not making money, manufacturers are not making money and the consumer is complaining because they are paying most. An unexpected gloom in the confidence of consumers is being experienced in these countries. The exports of readymade garments and knitwear to the Europe US and are likely to fall because there will be no demand in those countries where people would keep money with themselves for meeting their basic needs during rainy season. Everyone will be open with spending money for non essentials. Bangladesh needs foreign direct investment (FDI) up to 28% of GDP (almost 415 billion) every year to reduce poverty in the country. Whatever FDI was coming to Bangladesh encouraging but it may slow down considerably. Likewise foreign help will be less from the countries of G-7 to Bangladesh. It is reported that remittances during the last financial year stood to almost $7 billion dollars, 25% were from the industrial countries in the west and 75% come from the Middle East. The Middle East has not been saved from the crisis and stocks fell over in the oil-rich countries, even in Dubai. Furthermore labor laws in some Middle East countries have changed to the detriment of foreign workers. It is likely that remittances will be less because there will be jobs-cut in the countries of economic slowdown. There is one flip side of the financial crisis in that price of oil has fallen down to a level, unimaginable this season. At this time it was less than about $75 dollars, from the highest of about $147 per barrel. That would enormously help Bangladesh to import oil. The withdrawal of GSP by US causes a great trouble to the economy of Bangladesh. The Govt. is trying to get it back but in vein. If the GSP will back again Bangladesh will be able to gain good result about the crisis. Then the fundamental rights will be save, we can assume this.
Sunday, January 4, 2015
Economical condition of Bangladesh
There is a saying that when America sneezes, the whole world gets flu. Bangladesh is surrounded to what transpires in international markets and economies of leading countries. While America with its $13 trillion economy where Bangladesh's is around $70 billion dollars in GDP. Bangladesh cannot be immune from the global economic slowdown and is most likely to be adversary affected sooner or later. In the industrialized states, it has already reported that the retailer is not making money, manufacturers are not making money and the consumer is complaining because they are paying most. An unexpected gloom in the confidence of consumers is being experienced in these countries. The exports of readymade garments and knitwear to the Europe US and are likely to fall because there will be no demand in those countries where people would keep money with themselves for meeting their basic needs during rainy season. Everyone will be open with spending money for non essentials. Bangladesh needs foreign direct investment (FDI) up to 28% of GDP (almost 415 billion) every year to reduce poverty in the country. Whatever FDI was coming to Bangladesh encouraging but it may slow down considerably. Likewise foreign help will be less from the countries of G-7 to Bangladesh. It is reported that remittances during the last financial year stood to almost $7 billion dollars, 25% were from the industrial countries in the west and 75% come from the Middle East. The Middle East has not been saved from the crisis and stocks fell over in the oil-rich countries, even in Dubai. Furthermore labor laws in some Middle East countries have changed to the detriment of foreign workers. It is likely that remittances will be less because there will be jobs-cut in the countries of economic slowdown. There is one flip side of the financial crisis in that price of oil has fallen down to a level, unimaginable this season. At this time it was less than about $75 dollars, from the highest of about $147 per barrel. That would enormously help Bangladesh to import oil. The withdrawal of GSP by US causes a great trouble to the economy of Bangladesh. The Govt. is trying to get it back but in vein. If the GSP will back again Bangladesh will be able to gain good result about the crisis. Then the fundamental rights will be save, we can assume this.
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