Literature Review
The impact of the COVID-19 pandemic on economic growth in Bangladesh
Introduction: This literature review aims to critically evaluate the impact of the COVID-19 pandemic on
economic growth in Bangladesh. The COVID-19 pandemic has had a significant impact on the global
economy, and Bangladesh is no exception. The pandemic has resulted in supply chain disruptions, reduced
demand for goods and services, and job losses, among other issues.
Literature Review: A study by Islam et al. (2020) delved the impact of COVID- 19 on the Bangladesh
frugality. The study set up that the epidemic had led to a decline in profitable conditioning and an increase
in severance rates. The study also set up that the epidemic had negatively affected various sectors,
including husbandry, manufacturing, and services. The COVID- 19 has created devastating impact on the
labor market of Bangladesh and many people have lost their jobs due to economic downturns and
enforced lockdown measures. The International Labor Organization (ILO) has forecasted that more than
eighty five percent informal workers in Bangladesh are extremely vulnerable and will hit the borderline
people in low- income who are self- employed or day-worker (Mohiuddin,2020). This situation
substantially affects the civic employment, which leads to poverty, reverse migration and inequality by
creating challenges for the recent graduates to get jobs. A loss in revenue was reported by 50% of
companies, and about 24% indicated they would have to quit operating. It is concerning for approximately
1.5 million employees because sixty percent of companies have shut down in the first three months of
the lockdown, with a loss of fifty three million doller predicted annually by 2020 (Ferdous et al., 2020).
Another study by Hossain et al. (2020) investigated the impact of COVID- 19 on the garment industry,
which is a major contributor to the Bangladesh economy. The study found that the epidemic had led to a
significant decline in garment exports which resulted in job losses and decreased labor inflows. The United
Kingdom and USA brands had cancelled most of the orders. The other reputed brands like Walmart, GAP,
H&M, Primark, JC Penney, etc. had also cancelled their orders. According to the Bangladesh Garment
Manufacturers and Exporters Association (BGMEA) reports, the RMG sectors of Bangladesh need to face
financial losses worth over 3 billion USD worth for the pending work orders. It was a devastating
experience for the RMG sectors and 2 million engaged there (Zahir, 2020). A study by Mahmud and
Rahman (2020) assessed the impact of COVID- 19 on the husbandry sector in Bangladesh. The study set
up that the epidemic had led to a decline in agrarian productivity due to force chain dislocations and
reduced demand for agrarian products. The study also suggested that the government should give support
to growers to help them manage with the impact of the epidemic. BRAC Institute of Governance and
Development set up that COVID- 19 reduced the estimated 2020 yield of Boro rice by 7 %, amounting to
approximately 3.87 core taka in lost profit for the country. Low demand and reduced product combined
with high input prices redounded in a 40% loss for Boro farmers in 2020. It was discovered by (Zabir et al.,
(2021) delved that inadequate monitoring systems and constrained transportation are the major
obstacles to the nation's capability to meet its food needs. The lockdown drastically restricts the
husbandry community's movement, substantially hurting ranch sloggers, who must generally move from
job to job in order to earn a pay envelope. Multitudinous enterprises associated with COVID 19
consequences were linked in the check findings, including loss of labor mobility, rising labor costs,
confined transportation, loss of food security and salutary diversity, dropped inflows, and increased
consumer query (Shoaib & Arafat, 2020).Furthermore a study by ( Hasan et al. (2021) delved the impact
of COVID- 19 on the banking sector in Bangladesh. The study set up that the epidemic had led to a decline
in credit growth and an increasing-performing loans. Moreover, a study by Ahmed et al. (2021) estimated
the impact of COVID- 19 on the tourism sector in Bangladesh. The study set up that the epidemic had led
to a significant decline in tourism, performing in job losses and reduced inflows for workers. As a result,
businesses lose plutocrat and workers lose jobs (Deb & Nafi, 2021). According to tourism experts, over
4,000 million people are employed by stint drivers, hospices, resorts, airlines, and food businesses that
are presently fighting to stay round. The National Board of profit (NBR) took Tk 3.28 billion in trip duty
during the former financial year, lower than half of the amount collected the year before. Tk7.66 billion
in trip duty was collected in fiscal year 2020. By 2021, air business would have dropped by 60, while the
airline sector will have lost US$ 370 billion due to the epidemic, according to an ICAO assessment released
on 15th January (Mala, 2021).
In conclusion, the COVID-19 pandemic has had a significant impact on economic growth in Bangladesh.
The pandemic has led to supply chain disruptions, reduced demand for goods and services, job losses, and
reduced productivity in various sectors, including agriculture, manufacturing, services, and tourism. To
mitigate the impact of the pandemic, the government should implement policies to support various
sectors, including the garment industry, agriculture, banking, tourism, and the informal sector.
Additionally, the government should provide support to workers who have lost their jobs and incomes
due to the pandemic.
REFERENCES:
1. Mohiuddin, A. K., (2020),”An Extensive Review of Health and Economy of Bangladesh amid Covid-
19 Pandemic”, European Journal of Sustainable Development Research, 4, em0139.
https://doi.org/10.29333/ejosdr/8433
2. Ferdous, M. Z., Islam, M. S., Sikder, M. T., Mosaddek, A. S. M., Zegarra-Valdivia, J. A., & Gozal, D.
(2020),” Knowledge, attitude, and practice regarding COVID-19 outbreak in Bangladesh”, An
online-based cross-sectional study. PloS One, 15(10), e0239254
3. Deb, S. K., & Nafi, (2020). “Impact of COVID-19 Pandemic on Tourism: Perceptions from
Bangladesh.” SSRN Electronic Journal (January). Doi: 10.2139/ssrn.3632798.
4. Mala, D.A., (2021). Bangladesh's tourism industry devastated by Covid-19 fallout. The Financial
Express. Retrieved from https://thefinancialexpress.com.bd/trade/bangladeshstourism-industry-
devastated-by-covid-19-fallout-1626230592
5. Shoaib, J. U. M., & Arafat, M. F., (2020), “IMPACTS OF COVID-19 ON AGRICULTURE IN
BANGLADESH. Covid-19 – Dispatches from the Ground”, WOCAT.
6. Zabir, A. Al, Mahmud, A., Islam, M. A., Antor, S. C., Yasmin, F., & Dasgupta, A. (2021),” COVID-19
and Food Supply in Bangladesh: A Review. South Asian”, Journal of Social Studies and Economics,
10(1), 15–23. https://doi.org/10.9734/sajsse/2021/v10i130252
7. Rozina, A., Sumaiya, S., Sumaya, A., Rahman,M., & Adnan,A., (2021). “Impacts of Covid-19
Pandemic on RMG Sector: A Study of Bangladesh,” International Journal of Science and Business,
5(11), 1-11. doi: https://doi.org/ 10.5281/zenodo.5623853
8. Zahir, S. (2020). What Order Cancellation Means for the Bangladesh RMG Sector? 2020. Retrieved
from https://databd.co/stories/what-order-cancellation-means-for-the-bangladesh-rmg-sector-
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