Literature review assignment assignment (approx. 1000 words)
Name: Sharmin Akter
1/3
The impact of the COVID-19 pandemic on economic growth in Bangladesh
Introduction:
The purpose of this literature review is to assess the COVID-19 pandemic's effects on Bangladesh's
economic development critically. Bangladesh's economy is not an exception to the major effects of the
COVID-19 pandemic on the world economy. In addition to other problems, the pandemic has caused
supply chain interruptions, decreased demand for goods and services, and job losses.
Literature Review:
As we know, the study established that the outbreak had a detrimental impact on several industries,
including manufacturing, services, and animal husbandry. Islam et al. (2020) study examined COVID-
19's effects on Bangladeshi frugalness. The analysis established that the outbreak had caused an
increase in severance rates and a decrease in good conditioning. COVID-19 has had a disastrous effect
on Bangladesh's labour market, and many individuals have lost their jobs due to economic downturns
and tight regulations. According to the International Labor Organization (ILO) prediction, more than
85% of Bangladesh's informal workers are vulnerable, affecting low-income self-employed or day
Laboure’s on the margins (Mohiuddin, 2020). Due to difficulties finding employment for fresh
graduates, this circumstance significantly impacts civic careers, contributing to poverty, reverse
migration, and inequality. About 24% of businesses said they would have to stop operating, while 50%
reported a revenue loss. A loss of $53 million is expected annually by 2020 (Ferdous et al., 2020), which
is problematic for the 1.5 million employees affected by the lockdown's 60% business closure rate in
the first three months.
The analysis discovered that the outbreak had caused a sizable fall in garment exports, leading to job
losses and decreased labour inflows. According to Hossain et al. (2020), who looked into how COVID-19
affected the garment sector, a vital driver of the Bangladeshi economy. Most of the orders were
cancelled by the American and British brands. Other well-known retailers, including Walmart, GAP,
H&M, Primark, JC Penney, etc., had also cancelled their orders. The RMG industries of Bangladesh must
endure financial losses totaling more than 3 billion USD for outstanding work orders, according to
reports from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The event
devastated two million people who worked in the RMG sectors (Zahir, 2020).
In my point of view, the investigation established that the outbreak had decreased agricultural
productivity because of supply chain disruptions and decreased demand for agricultural products.
Mahmud and Rahman (2020) conducted a study to evaluate COVID-19's effects on Bangladesh's
husbandry industry. The research also recommended that the government assist growers in coping
with the epidemic's effects. According to the BRAC Institute of Governance and Development, COVID-
19 decreased the anticipated "Boro rice" output for 2020 by 7%, costing the nation 3.87 core taka in
lost revenue. In 2020, Boro farmers suffered a 40% loss due to low demand, reduced product, and
excessive input prices. Zabir et al. (2021) conducted research that found the main barriers to the
country's ability to meet its food needs to be insufficient monitoring systems and limited
transportation.
2/3
Ranch sloggers, who often must shift from job to job in order to earn a pay packet, are negatively
impacted by the lockdown's severe restrictions on movement in the husbandry community. The check
results revealed a number of enterprises connected to COVID 19 effects, such as decreased labor
mobility, rising labor expenses, constrained transportation, decreased food security and beneficial
diversity, decreased inflows, and raised consumer inquiry (Shoaib & Arafat, 2020). An investigation into
the effects of COVID-19 on Bangladesh's banking industry was conducted by Hasan et al. in 2021.
According to the study, the epidemic caused a reduction in credit growth and an increase in loan
performance.
As I see it, the investigation established that the virus had caused a considerable fall in tourism,
resulting in job losses and decreased worker inflows. Due to this, employers lose plutocrats, and
employees lose their jobs (Deb & Nafi, 2020). Furthermore, a study by Ahmed et al. (2021) analyzed
COVID-19's effects on Bangladesh's tourism industry. According to tourism experts, over 4,000 million
people are employed by the airlines, hotels, hospices, resorts, and food companies currently trying to
stay open. During the previous financial year, the National Board of Profit (NBR) collected trip duty of
Tk 3.28 billion, less than half of what was collected the previous year. Trip duty revenue for the fiscal
year 2020 was Tk 7.66 billion. According to an ICAO study published on January 15th, by 2021, the
airline industry will have lost US$ 370 billion due to the epidemic.
Conclusion
In conclusion, my discussion shows that the COVID-19 pandemic has significantly impacted Bangladesh's
economic expansion. The epidemic has affected a number of industries, including agriculture,
manufacturing, services, and tourism, causing supply chain disruptions, decreased demand for goods
and services, job losses, and decreased productivity. The government should put measures into place
to promote a variety of industries, including the apparel industry, agriculture, banking, tourism, and the
informal sector, to lessen the pandemic's effects. The government should also offer assistance to
workers who have lost their job and sources of income due to the pandemic.
3/3
References:
• Mohiuddin, A. K., 2020. COVID-19 and 20 Resolutions for Bangladesh. European Journal of
Sustainable Development Research, 4(4), em0139.
• Ferdous, Z., Islam, M. S., Sikder, M. T., Mosaddek, A. S. Md., 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.
• Deb, S. K., & Nafi, S. M., 2020. Impact of COVID-19 Pandemic on Tourism: Perceptions from
Bangladesh. SSRN Electronic Journal.
• Zabir, A. A., 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,
15–23.
• Aktar, R., Sumaiya S., Sumaya K, 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
• Shoaib, J. U. M., & Arafat, M. F., 2020, IMPACTS OF COVID-19 ON AGRICULTURE IN
BANGLADESH. Covid-19 – Dispatches from the Ground, WOCAT.
• Imran, M. A.., & Ahmed, I., 2020. Job Insecurity in Private Education Sector Considering COVID-
19 Pandemic: Bangladesh Panorama. American International Journal of Business and
Management Studies, 2(2), 41–51.