Corona virus (CAD-1) spreading worldwide is hitting the economy. Analysts warn that the impact of the global recession, which began in the early 20’s, could be overstated. In the meantime, the global stock market has fallen sharply. Over the past week, the world’s largest stock market has had a bad time. According to international media analysis, investors lost $ 1 trillion ($ 1 billion) last week. After the recession, such a decline was not seen. Fuel prices are also falling. The impact of the Corona virus is expected to slow down, but the opposite is happening. Corona is spread in 4 countries. Panic has begun to take on a global pandemic. The impact of this has created panic in the entire global economy.
Concerns are also increasing in Bangladesh. The cost of garment accessories has already gone up by 5 percent due to disruptions in the export of goods from China, said BGMEA, an industry body of the sector. On the other hand, the president of the organization said that the retail stores of big brands worldwide are closed. Rubana Haque. He told Ittefaq yesterday that due to this, the profitability of the brands has dropped to 5%. On the other hand, the reserves of factories are running out due to disruption of supply of raw materials and accessories. This could create situations like loss of production, sending goods on airplanes, discounting beer or canceling orders, which would cause huge losses for entrepreneurs in the sector. On the other hand, exporters of leather goods and crabs are going to suffer huge losses in Bangladesh’s exports to China.
Economists in the country also say the Corona virus is on the verge of outbreak worldwide. This created a great fear of global recession. However, the extent of the virus and how long it lasts will depend on the extent of the damage. As a result, the economic growth in Bangladesh is going to fall, said economist and executive director of the Policy Research Institute (PRI). Ahsan H. Mansour. He told Ittefaq, “The global economy is going towards recession. Our economy was in the bad. It will be worse Because the revenue will also decrease. Where it goes, it is not yet known. ‘
The global stock market collapses
Under the influence of the coroner, the national and international economies are moving to a shaky spot. On Friday, the European Union’s stock market saw a huge downward trend. The main index fell more than 3 points in the London stock market. As a result, the share price fell 5 percent. The biggest fall was in the US stock market. The US Dow Jones Index record fell 5,8 points on Thursday. As a result, US stock market investors lost 5 percent. The stock market in Asia has also been targeted. Japan’s Nikkei index of Asia’s largest stock market fell by 227 points, or 9.5 percent. China’s Shanghai Composite Index fell 5.3 percent on Friday alone. Although US government bonds are considered the safest investment, its sales record has gone down.
Fuel prices have also dropped in international markets. Crude crude oil prices were down 5 percent to $ 5.75 a barrel yesterday. Different countries are banning travel, closure of educational institutions, major sports events and business conferences.
Goldman Sachs, the US multinational investor bank, has warned that US investors will not see a profit this year unless the outbreak of the Corona virus spreads. Big companies like Apple and Microsoft have already suffered financial losses.
The economist said. Zahid Hussain said the Corona virus is in danger of prolonged and widespread outbreaks. He told Ittefaq yesterday that the global financial loss could be reduced if the virus was still under control. But that is not diminishing, but it is changing every day. New countries are being attacked. The global supply chain will be severely disrupted if it is more widely spread. As a result, both supply and demand can be reduced. As a result, it can lead to global recession. Depending on its prevalence, how deep the recession will be.
Concerned that the cause of the global recession of the year 25 was because of financial problems due to weaknesses in the regulation of big companies. But this time the situation is different, the virus problem. One of the major traumatic effects of this year’s corona virus.
The situation in Bangladesh
Concerns among entrepreneurs are increasing day by day. Individually, China is Bangladesh’s largest trading partner. The total trade volume of Bangladesh with China in the financial year of FY05 was equal to US $ 4 billion. Out of this, Bangladesh exported $ 4 million worth of goods against the import of $ 4 million. Although the entrepreneurs spoke a bit softly at the beginning of the Corona virus issue, their concerns have started to increase as the prevalence of it spreads. Entrepreneurs are already at a disadvantage because of disruptions in goods arrivals from China. Twenty-two trade unions and chambers have reported to the FBCCI, the top business organization, about their losses. Most of them said the price of imported goods from China had gone up. On the other hand, the Commercial Counselor of Bangladesh Embassy in China also sent a letter to the FBCCI and addressed the situation. Especially the transportation of the country, The cargo shipments reported to be disrupted. It said that this could have a huge negative impact on the commercial activities of both countries.
In Bangladesh, the raw material of garment products is imported from China for $ 12 million a year. On the other hand, 5 percent of the textile and garment accessories come from the country. BGMEA president Dr. of the garment industry owners. Rubana Haque said the price of some accessories rose by up to 5 percent. This situation is killing entrepreneurs in the traditional way. If China’s logistics are not normal within the next two weeks, then we will suffer about three months of losses.
China is now a major market for leather and leather products in Bangladesh. Entrepreneurs of the sector said that about 5 percent of Bangladesh’s exported leather and leather products goes to the Chinese market. But for the past few days, the country has been closed for export. According to data from the Bangladesh Finished Leather, LeatherGoods and Footwear Exporters Association (BFLFEA), earlier, on average, the organization was given an average of 3 certificates per day for export to China. It has now dropped to near zero. That is, the current purchase is Tulani. Former BFLFEA president Tipu Sultan said the sector in crisis is going to suffer a catastrophic disaster. He told Ittefaq that many people made the product but could not send it.