Bangladesh’s external trade would have a heavy blow from the economic crises in Europe and the US due to the rapid global outbreak of the novel coronavirus, said exporters and experts.
The month-long lock-down of Italy due to the outbreak will immediately hit Bangladeshi exports as the European country buys products worth some $150 million a month from Bangladesh.
The European Union economy, which has been struggling for months over Donald Trump’s trade war, is set to face a further blow due to Trump’s travel ban imposed on the EU countries.
EU is the largest destination of Bangladeshi exports as a bloc while major countries like Germany, France, Spain and Italy are struggling to contain the coronavirus spread.
Experts and businesses said that following a supply side uncertainty Bangladesh was now going to face a demand side uncertainty due to the spread of the pandemic in Europe and North America, the major markets for Bangladesh.
Italy on Wednesday tightened lockdown and ordered closure of all shops and bars, except supermarkets, food stores and chemists, due to the highest daily rise in deaths in any country outside China since the outbreak began.
They also said that the travel ban on the EU countries imposed by the US might be harmful as the economic activities of the EU were heavily linked to the US, they said.
Following the imposition of travel ban by the US the share markets in EU countries, including the UK, witnessed a slump as the US is one of the biggest markets for EU products, including automobiles, Experts and businesses mentioned.
‘If the economies of the EU and the US are affected due to the measures to prevent coronavirus it would adversely impact Bangladesh’s economy as the country’s export earnings mostly depended on the two markets,’ Abul Kasem Khan, former president of Dhaka Chamber of Commerce and Industry, said.
