Coronavirus and impact on the Bangladesh economy: Assessing the damage of the black Swan of 2020

Abstract

Although Bangladesh has seen a delayed appearance of COVID-19 with the first identified case on March 8, 2020, it was still caught off guard, with regard to its healthcare and economic preparedness. COVID-19’s impact on Bangladesh’s economy is particularly pronounced because of the country’s reliance on globalized supply chains of international fashion brands and human resource exports. Banks have considerable exposure to industries in general and ready-made garments in particular. The effect on these sectors, combined with a shrinking consumer economy has hit all sectors hard. This paper, based on expert interviews, primary data from government websites, and news reports, attempts to assess current and potential damages to Bangladesh, at a time when the country has yet to reach the peak in its infection growth rate.