Recession in the developed markets and slowdown in the Middle East has already begun to pose threat to Bangladeshi exports and remittance inflows, he added. Citing a 30 percent decline in capital machinery import, Zahid said there might have been a significant slowdown in investments. On the impacts of the global crisis he said, export, remittance, revenue and banking sector along with the employment would be affected severely. "At least 2 to 2.5 million new local jobs will be needed until the global economy recovers, compared to 1.1 million job creation prior to the crisis," he mentioned."Demands for bailout packages from businesses might not help the poor and the agriculture, livestock and fisheries sectors are doing well", said the senior economist of the international donor agency.Xian Zhu said the impact on Bangladesh's growth may not be severe during the current fiscal year and the government should prepare the best for the worst.He said that government need to take precautionary measures to mitigate the impacts of the crisis especially for the poor by creating more jobs internally and safety net programmes should be given highest priority."The government needs to carry out the unfinished reform agenda to turn Bangladesh a middle income country," he added.
Bangladesh is still not hit hard by the ongoing global economic recession and the economy of the country is stronger in comparison with other countries in the region, said the World Bank (WB) yesterday. "The economy of the country is stronger in comparison with other countries in the region and it has more time to anticipate effects than developed and other emerging nations", said Zahid Hussain, senior economist of the WB at a workshop on 'State of Bangladesh Economy and Policy Response to the Global Financial Crisis' at the bank office in the city.