• Thursday, Jun 30, 2022
  • Last Update : 04:24 pm

The Economist: Bangladesh economy relatively safe from Covid-19 fallout

  • Published at 09:43 pm May 2nd, 2020
RMG factory
File Photo: A group of women working at a garment factory in Bangladesh Claudio Montesano Casillas

Bangladesh is ahead of India, Pakistan and Sri Lanka

Bangladesh has been listed as the 9th strongest economy according to The Economist’s report on the financial strength of the 66 emerging economies in the wake of the Covid-19 fallout. 

The ranking examines the vulnerability of selected economies across four potential sources of peril—public debt as percentage of GDP, foreign debt (both public and private), cost of borrowing and reserve cover.  

According to the ranking, the economy of Bangladesh has featured as strong or relatively strong in all said indicators.

Botswana tops the list of countries with the strength of its indicators while Venezuela fared as most vulnerable. 

Bangladesh, Botswana apart other emerging economies those made it to top 10 are, Taiwan, South Korea, Peru, Russia, the Philippines, Thailand, Saudi Arabia and China.

Bangladesh has fared better than three of its South Asian neighbours — India ranked 18th, Pakistan 43rd and Sri Lanka 61st.    

The Economist report, ‘Which emerging markets are in most financial peril’, says its ranking of 66 countries shows which are in distress and which are relatively safe.  

It says Covid-19 hurts emerging economies in at least three ways: by locking down their populations, damaging their export earnings and deterring foreign capital. 

Even if the pandemic fades in the second half of the year, GDP in developing countries, measured at purchasing-power parity, will be 6.6% smaller in 2020 than the IMF had forecast in October, states the report. 

“The damage to exports will be acute. Thanks to low oil prices, Gulf oil exporters will suffer a current-account deficit of over 3% of GDP this year, the IMF reckons, compared with a 5.6% surplus last year. When exports fall short of imports, countries typically bridge the gap by borrowing from abroad. But the reversal of capital inflows has been matched by higher borrowing costs.” 

To weather the crisis, the report states, emerging economies may need at least $2.5trn, the fund reckons, from foreign sources or their own reserves. One way to ensure countries have more hard currency is to stop taking it from them. 

The G20 group of governments has said it will refrain from collecting payments this year on its loans to the poorest 77 countries (though the borrowers will have to make up the difference later). 

The Economist calculated the 66 emerging economies’ likely foreign payments this year (their current-account deficit plus their foreign-debt payments) and compared this with their stock of foreign exchange reserves. A country’s rank on each of these indicators is then averaged to determine its overall standing.

54
Facebook 54
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail