Economic Crisis in Bangladesh and the polishing activities

Bangladesh is a developing country and its economy is highly depended on its RMG (Readymade garments) sector and export sector. Also Bangladeshi economy highly dependent on the loan of the World Bank, Asian development bank etc. The Article is about a concrete study of the Economic crisis of Bangladesh and the reason behind this crisis. 

The economic crisis of Bangladesh comes forward when the inflation rate goes to the double digit. Now the inflation rate is 11.3%. That means the purchasing power of the general people decreased from previous. Bangladeshi Governments did some polishing activities for solving the economic crisis of Bangladesh. It is really a very hard work for the Bangladeshi Government.  The primary reason for the crisis is the government subsidy in the fuel and food. For taken this subsidy the government of Bangladesh took loan from the local bank. This kind of activities decreased the income source of the government of Bangladesh. The economist says that on average Bangladesh government took TK 1.4 billion loan from the local bank. Stock market crisis is another  reason for the crisis of Bangladesh. This is happen because of the lack of the knowledge of the investor of the share market. Short term and the small investor is the major victim of this collapse.  The Bangladeshi Government took some initial step for solving the problem of the share market.

The graph shows trend in exchange rate movements

The economy of Bangladesh heavily depends on the RMG (readymade garments) sector and the export sector, after the financial crisis happened in the world, the RMG and the export sector also affected. The growth of the readymade garments sector decreased 80% to 0% from the month of July 2008 to June 2009. The buyer of the foreign countries could not give much attention, because some countries gave them same product with lower price. Also Bangladeshi economies dependent on the remittance come from abroad. 

Remittance flow

The remittance side also affected because of the unemployment problem in abroad. In July 2009, the growth rate of the remittance inflows was 45%, in August the remittance inflows was 53%, in September  the remittance inflows was 33%, in October, the remittance inflows was 15%, in November, the remittance inflows was 23%, in December, the remittance inflows was 20%, in January, the remittance inflows was 20%, in February, the remittance inflows was 15%, in march, the remittance inflows was 10%, in April, the remittance inflows was 10%, in May, the remittance inflows was 21% and in June 2009, the remittance inflows was 21%. So it was a declining process of the remittance from abroad. This statistics said that the remittance declined 45% to 21% from last one year. So it is very alarming situation for the Bangladeshi government. So it is very challenging work for the Bangladeshi Government to sustain its economy in a good position.

At last, if the government of Bangladesh keep the inflation rate in single digit and attract the buyer by their quality readymade garments products then it will be very grateful work for the Bangladeshi economy.