Topic: Bangladesh economy facing headwinds (Read 260 times)

And the little I know about them, they can produce lots of things with their natural resources and even export to other countries. I know this cos I once had a business deal with someone from there and he further introduced me to what things they produce mostly textile. I can tell you for a fact, if their government should focus on developing Bangladesh, they will be one of the business hubs in that continent.

I agree, this happens to every nation especially when a country relies on another country's products or services. I think it is pretty normal, besides Bangladesh isn't a first-world country, so they might be just doing good with their economy and can easily maneuver things off. The world is facing global problems at the moment, it is not surprising that some countries may be affected directly or indirectly by these world events.

The Pandemic really hits differently, felt like the world isn't the world we lived in for the past 3 years, seems a lot has changed through that course.

You can indirectly thank Russia for the current economic state the world is in. Just as the whole of humanity had pulled together in order to fight back Covid, after 3 long years of crazy lockdowns and keeping a distance, along with lots of deaths caused by the first global pandemic in 100 years. Russia decided it would be a good idea to invade their neighbor, creating the biggest war in Europe since World War 2, because Putin was not able to keep his cronies in power after they were overthrown by the will of the people. Russia and Ukraine could, and can, be peaceful neighbors, that produce a lot of important exports in the world including metalwork and food stuffs like grain, but Putin has to go.

We can't just limit it to a single nation, I would say that it doesn't look like there seems just a single nation, it looks like there are a lot of nations that are doing "worse" and that's normal, the world is doing quite terrible with economy, wars, politics and many other stuff, even health is at alarming levels of bad these days. People forget that staying at home for a year or more and being locked down came with issues, from psychological to biological, believe the virus or not, vaccinated or not, that's not the point, staying at home for a whole year is not good for human body and mind. So all in all we are at a stage where its not really doing all that well as a globe. We have way too many issues and we can't really solve it at this moment.

Bangladesh will not be under as much pressure in the new year as it has to gain momentum due to the Ukraine-Russia war. Besides the opening of  will have a positive impact IMF loans will also be available in the new year if the government looks at remittance and export earnings the pressure will be reduced to a large extent. Also the rapid expansion of the garment industry has on the one hand increased the country's export earnings and on the other hand has contributed significantly to the empowerment of women by increasing the employment of women. Bangladesh ranks second in the world in terms of exports of ready made garments. In addition to the ready made garment sector the contribution of industry to the GDP has reached about 35 percent due to the expansion of small medium and large scale industries in various sectors.

Right now, the situation is really different in the country of Bangladesh. The people are quite poor, so the heads of their government officials are probably hurting now that we are facing them. But I also agree with what you mentioned, that it can really help in the development of their economy in some way.

And I hope they can also find a way to lower their high interest rates and their inflation rates so that their constituents, the citizens of their country, can somehow breathe a sigh of relief.

That's exactly what I'm talking about. China, under the guise of investment, is actually sucking resources out of countries that fall for its "tempting offer". Very briefly, their scheme looks like this:
- The "victim" country is offered "unique investments and joint projects". For example... well, let it be to build a huge port of "world scale".
- conditions: the state assumes credit obligations and China "helps as much as it can to build it".
- For example, the project costs 1 billion dollars. This is the state's commitment to China.
- China develops the project documentation (Chinese design institutes), China starts construction, where the main contractor is Chinese companies and Chinese resources. The local population is only a "living force". I.e. practical earnings only for Chinese contractors.
- When the project is ready, it "turns out" that it does not give the result that was predicted. Local executors, authorities, etc. are "assigned" the blame. The project is headed for bankruptcy.
- And here the most important thing is that China offers to buy it back, e.g. for 10% of the cost. The country's government is forced to sell it, as they have no ability to maintain it.
- Bottom line: China owns this infrastructure. Chinese companies have made money on a major project, the state "victim of investment" owes China 1 billion dollars for the project.....

It's a very primitive and general scheme

I don't know much about China's partnership with Bangladesh but I am aware that almost all the countries that became friendly with China in Africa are suffering from severe economic problems. I can not also conclude that China is the sole cause of this problem because other reasons like corruption might have contributed to these financial problems. But Chinese loans are an economic death sentence. The interest rate is outrageous and the terms of loans are kept secret from even the legislature. These loans and the terms of repayment are not in public space for scrutiny. These loans are tied to collateral which even include handing over the sovereignty of the nation to China.

Due to the interest rate and other conditions, many nations such as Ghana and Zambia cannot meet the repayment plan. Kenyan parliament is asking for renegotiation of the loan because of the burden it has placed on the nation. There was turmoil in the Nigerian parliament when the term of a Chinese loan was secretly exposed. It became clear that the presidency and minister of transportation signed a loan that could make Nigeria China's vassal state.

Lol, don't wish something that you might regret man, tho I do agree that China's current government has develop their country very well but that kind of strict government come with a price, you will be monitored 24/7 online and offline. Not to mention that one of their way to develop their country is by giving a debt trap to other country, (probably bangladesh happened to be one of the country).

What do you expect from a country that is vulnerable to natural disasters? Bangladesh has made significant progress in reducing poverty and improving living standards but still relies heavily on foreign aid and investment to support its economy. There are several reasons for this. Based on world bank's classification system, Bangladesh is regarded as a low income country based on their per capital income. So, it definitely needs external financial support in order to meet up with its developmental needs. Secondly, Bangladesh is a well known for its garment industry which accounts for a large portion of the country's exports. In fact, ready made garments account for about 80% of the country's total exports. Bangladesh is the second largest exporter of garments in the world after China and this made the export sector to heavily depend on foreign markets, particularly the United States and Europe.

The population is not enough to consume what they're producing. It's not a bad idea but it has negative consequences, however no country is surviving alone. They depends on one another in one way or the other.

There is nothing to be sorry about buddy. I understand that you didn't mean that the account belongs to me. But look at his name; there are other members too who were confused by his username. All I said is I have seen that users pick similar usernames and this is not too bad. But, when they pick a name who kind of established and the new account continues to create such a spammy topic, that may disappoint others. I had to clear my position that this is not my account I have no contact or connection, and he is not one of my friends, and I never talked to this guy. It's his choice why he picked this username. I left my neutral already.

The government only cares about their power. They don't care if we live or die. I am neither with the government nor against the government. But in recent years, Bangladesh has become a living hell. The government did a lot for the country, there is no denying that. They made big roads, bridges, modern buildings, improved health, worked towards load shedding, fought the Corona virus, etc. But the lifestyles of common people didn't change at all. Rich people became richer, and poor people became poorer. The only people who have benefited from these so called big developments are the rich.

Brother, prices didn't double; they tripled. The onion's price is 90 bdt, when it used to be only 30 bdt. Potatoes are 45 bdt when they used to be only 15-20 bdt. These are the most common things. Just imagine the price of meat and fish. The poor and the middle class can't effort to eat fish and meat now. Meat and fish have become a luxury that only the rich can afford. Where can we go? Are our basic, fundamental needs being fulfilled? No!!! People are struggling so much just to survive now.

What's even sad is that our country is called,
meaning fish and rice are our staple foods. And we can't afford to eat fish.  

Right now, if there is anyone who has been greatly affected by the state of the economy in Bangladesh, it is the constituents that they belong to. I just can't imagine how high their interest rate is compared to inflation. It means that the price of their goods there is more expensive than here in our country.

If here in our country the prices are rising and really expensive, there in Bangladesh the price has more than doubled. I don't know how the people there are able to survive, but I hope the government officials there will immediately take action to lower their inflation rate, in fact, so that their countrymen there can breathe easy.

Is this a typo that was meant to read high population, because my google search tells me this is a country with ~170 million people and in the world of business a high population is a good population, unless the tax system has failed to collect taxes to support it.

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Several countries got in trouble with the Chinese loans as Corona and all the lockdowns made several countries unproductive for quite sometime which lead to some countries like Srilanka to default and surrender some key assets but I don't believe Bangladesh will go through the same as China has be advised to take a much lenient approach... perhaps a BRICS deal could save them.

Indeed, the Bangladeshi government had thrown wide open its doors to foreign investors interested in investing in Bangladesh. However, due to the uncertainties arising from the Ukraine-Russia conflict, this year's plans have not fared well. The global economy has significantly impacted numerous countries, including Bangladesh.

This situation was exacerbated by the government's borrowing from the Bank of Bangladesh, which led to increased money circulation. Consequently, high inflation became unavoidable. Initially, the government had set a target inflation rate of 7%, but it appears that inflation has surged beyond control, reaching a peak of 9.7%.

Perhaps all of Bangladesh's economic woes will begin to mend once the global conflict subsides and economic stability is reestablished.

Source : link
link 2

Sorry for my words, I did not meant to say this account belongs to you, I actually confused by name, and to be honest, these acts should be discouraged by others, they should not select the names by just seeing others like you said, he say my name. Well, Sorry again.
He has already given the tag of neutral by lovesmyfamily, and that is good. New comers are mostly referred by community members if not then old community members (local ones) should guide them and teach them about the rules of the forum and its writing ethics. If they don't follow the rules, just open case and don't warn them otherwise, they might counter attack you like a member in our community did with zainmalik75. (you might be aware of the case which was opened but then locked by the accuser.)

I've decided to have a look at the IMF directly because the article the op linked to doesn't provide sources. The phrase about limping seems accurate, but the fact is also that the economy is projected to continue growing, namely grow by 3% over 2023, and 2.9% in 2024, which IMO is still good. I've also looked at data on Bangladesh, and it seems that, in terms of GDP, its economy is growing well above this rate, at 7-8%.
It needs way more than that, though, considering how bad it currently is.

I don't know about others but Bangladesh makes one of the best garments in the World. Each time I visit a country, I always see "Made in Bangladesh" wears in their shops, malls, and market. Pretty interesting they are doing massive exports all over the World. I can understand their economic situation to an extent because even the war between Russia and Ukraine has also take a toll on them. I read somewhere that they are not to do business with Russia. Exports is one of the ways to boost their economy and when it is restricted, the economy is affected.

Looks like DVlog already addressed this issue in both global and local board. I see you have quoted some of his comment and found some low quality posters. Thank you for taking your valuable time to sort those users. This kind of things has happened before in BD thread. And I'm relieved that, many users have started to notice this. Because now this kind of activity will be stopped. As soon as a issue is addressed in global, users stops operating (Specifically in BD thread). The local thread will be calm, at least for now. With less and less copy paste source news and low quality translations.

Not sure what happened to many of these governments. My country is also doing this shitty system, we have to undergo all these elections every cycle and we have to vote for all these politicians but do nothing on their terms.

If I have all the power. I'd import Xijingping into my country and let him do all the stuff and his fellow men over here and citizen can mind their own business while the government build all the things they can do without opposition to stop them. Since the time we got independence, we have spent more $funds on elections than building bridges to connect lands divided by rivers.

Bangladesh is supposedly a rich country with access to rivers and seas and all other resources from neighboring countries like India and Pakistan. They only need to cooperate with these countries.

Well, that's what politics is all about. It won't be called politics if there won't be any opposing parties or forces that will subject to the current administration and governance. We can imagine a world that has no politics and everyone is agreeing to the ruler or highest official that runs a country. Anyway, that's a utopia and won't happen or maybe it will but just through one world government as what the conspiracies are saying. Going back to Bangladesh, I've just watched the news about belt and road initiative. Surely this is a debt trap from China.

        -  Right now, Bangladesh is really facing a crisis. Their interest rate is very high in terms of inflation, which has been around 9.5% since August this year. Then their foreign exchange reserves declined a few months ago, so they blamed the IMF for this matter.

The size of the problem that this country is facing in reality means that maybe in order to solve it, they should somehow extend the promotion of their exports, and then the corrupt politicians, if they can't stop it, should first reduce their corruption so that their economy will be able to get out no matter what, honestly.

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source: https://thefinancialexpress.com.bd/views/views/major-challenges-for-bangladesh-economy-in-2023

I highly recommend following the Bangladesh situation. It will be a "live economic show" about "Chinese friendship, aid and investment". I assume the outcome will be the same as with Sri Lanka. We can even place bets. Bangladesh is very sorry that they fell for this dubious friendship and did not take into account the experience of their neighbors. I have previously described how the situation will develop, and this scheme China uses with all its "friends", and Bangladesh will not be an exception. So, let's take popcorn, sit back and watch....

FYI, I have no connection with this account. I do not know this user. He saw my name and then created his account with a similar username. This is kinda odd. We have seen some weird names like DTmember. I have also seen that users choose a username similar to another user, which sometimes creates confusion. Sometimes I get confused about Darkstar, Blackstar, and Blackboss.

I would request OP to stop doing these things. Please stop posting full news from other sources to start a generic discussion. If it's something too serious, you may still create a thread using those news. But please add your own Point of view as well.

I think that's happened in a lot of developing country, in one side opposition is good to watch the winning parties so that they are not corrupt, and don't do stupid thing. But on the other hand, they hinder the country development by denying all the good programs and idea by the winning side, even when the table turns on the next election, they prefer to start a similar project from zero rather than continuing the good project created by their opponent.

Mate, that's also what's happening here in our country. There's the opposition and the administration party and together with their alliances. It's always the disagreement and agreement from these political parties. And IMHO, that's what makes the progress of our country slow when there's always the disagreement and time is consumed from all of these debates from both parties. I think that debt also plays a big part, on what I've seen, the chart for Bangladesh's debt is on an uptrend til' 2028 based on statista.com.

If your country's economy is linked to interest rates and debt, shipping and supply chains, oil and gas, or geopolitical determinations, then the current year will inevitably have a severe impact on the local economy due to raising interest rates, fluctuations in the price of the dollar, the slowdown of the Chinese economy, and global problems and challenges.

The agricultural, service, and tourism-based economies are less affected. Therefore, I believe that the countries of Southeast Asia are the least affected by what is happening in the global economies and the economic damage to them is less, in addition to the countries of South America, which do not have a large exposure to debt. I do not know where Bangladesh is located, but look at your economy, its nature, and the factors you mentioned, and you will know whether there is an impact or not.

You are right, and the behavior of your compatriots is very disappointing. But you could raise this issue in your local section. Besides the fact that your newcomers publish posts according to rule number one: low quality, providing copies and pastes with a link, this topic could even be located in the Bangladesh section. What is also noticeable is how your users grow accounts, thinking that the exchange of merit is not noticeable to others.
OP, do you have your own words or just a link to the news?

They are independent country though. And most countries today seem to be struggling.

One problem always is somewhat to be blamed in a country that has been struggling for years like Bangladesh is the government with 2 parties that do nothing but stopping each others project depending on who is seated in the presidency.

One government party will allow projects stand for long term to which they can expect a project will be completed since there is no opposition.

So Bangladesh is going to participate in the Belt and Road Initiative of China? Well, I guess they've just signed a death warrant for their sovereignty and economy with those loans. Sri Lanka doesn't technically own the infrastructures that was built on their country due to that agreement and the money that was built on that just got back to China because they have to hire a Chinese construction company to build those buildings. If that's what's going to Bangladesh then expect that "limping" economy to become "crippled" or "hobbled".

Well, we can't blame anyone as long as source is added. Recently there have been many new newbies that are posting this kind of copy paste news like posts in BD thread (We don't have own local board yet). I'm not saying it's bad but one shouldn't just join the forum and start posting news from various sources. If you look closely, almost all the newbies in bangla thread are doing this. As soon as a user registers, s/he miraculously finds BD thread and start sharing news. When I first joined the forum I didn't even knew there was a BD thread. That's why I stopped posting there, even reputed members are also posting less. There is no education discussion happening, no ideas are being shared, no questions are made, just news news all days long. Some members are still trying to be creativity though.

Another thing I noticed if you look at the usernames and post style, you'll find many similarities. My guess is one or two or a group of people are managing these accounts. Although I can't connect them as alt accounts but you'll know when you see them. Even there was a username called DTmember, don't you think that's odd? How would one know DT is a thing in bitcointalk? I'm not saying having alt is a crime but what I'm seeing these days in my thread is disappointing.

It's not ideal for newbies to post only news. He is new, he should behave like one. He should be making questions, making threads not posting news. What's your say on that?

My comment might be irrelevant to this thread and board, but I though it might be worth sharing  

The COVID-19 pandemic, the war in Ukraine, and the increase in natural disasters caused severe damage to the economy of many nations including the developed ones. Just like other developing nations Bangladesh is going through inflation, currency loss of value, and declining external reserve caused by a decline in export revenue.

But the country's major problem is corruption.  Bangladesh is ranked 147 among 180 nations in the Global Corruption Perception Index (CPI) of Transparency International. It is also the second most corrupt nation in South Asia. In a country where the meager resources that would have been used to develop the country are diverted to the personal bank accounts of corrupt politicians, such a nation might never be free from economic woes. The citizens know that Bangladesh's main problem is corruption which is why there have been many public uprisings, riots, and demonstrations to remove these corrupt politicians from power but many of them have been unsuccessful.  

It is concerning to hear that a developing country is struggling to cope with the economic crisis.

Bangladesh is having a tough time at the moment due to various crises in various sectors such as fuel crises, high inflation, weak banking sector, trade deficit, and depleting foreign exchange reserves.

The economic problems that are happening in Bangladesh are due to poor state governance and have been ignored for too long,
so problems that initially only have a temporary impact take root and become a prolonged impact.

Bangladesh also needs support from other developing countries such as Indonesia.
Last month Indonesia - Bangladesh had a Bilateral meeting which took place at the Kakatua Room, Jakarta Convention Center (JCC), Jakarta.
During the meeting, the two discussed cooperation in the field of trade.

Indonesia-Bangladesh friendship can continue to be strengthened concretely.
One of them is optimizing trade relations between the two countries and removing trade barriers.

https://www.kompas.id/baca/internasional/2023/09/06/bilateral-untuk-menghilangkan-hambatan-perdagangan

At first, I will say why you think that your economy will not be affected by the other countries, like you have not reached a point of full independence, and I don't think any other country is at a place where if something bad happens all over the world, they will be saved. As you said, you are a developing country, so we totally depend on the Tier 1 countries and also take loans from the IMF, etc. Which means the economies of those countries directly impact us.

And at second, I will say, don't just copy and paste the news from the website, because it seems so unethical. If you really have some feelings or intentions to get some ideas, then add your words, ideas, and feelings in the post too. If a robot can do this work, we can ask them to add a bot like in the WO (we get graphs automatically) that could post all the news here. Why are you posting it?

I checked your history, and you are also from Bangladesh. I am not targeting Bangladesh; actually, I thought you (OP) were the learn Bitcoin dude, but then I came to understand that you are learn crypto. Well, the point is, I found another guy yesterday, also your local community member, doing the same thing.

NOTE* I respect the Bangla community, there are really good dudes there, I value their posts, and I also know that we can copy and paste things here if we quote them and give a source link, which means this post might be eligible for a no-plagiarism case. But still, I thought it would be nice for the OP to add some value.

8th country by population, 7th by density, having the capital as the 7th city in the world by density and this is low?


No!
The actual quote was:

Bangladesh is classified as a LDC -least developed countries
https://www.un.org/ldcportal/content/bangladesh-graduation-status

As i can conclude, rapprochement with China is only one side of the coin, as this is accompanied by declining cooperation with its classic allies India and Russia. The classical allies are those who strongly support the Bangladeshi economy for mainly geostrategic goals, which is to strengthen its position vis-à-vis its rival Pakistan, which is supported by the United States. However, it has been noted recently that the support of the allies has declined, forcing Bangladesh to turn to China.
My information may not be completely accurate because I have stopped following developments in the Asian economies since the beginning of the Ukrainian war.

In addition to what has been said, Bangladesh is a low population country in which i expect the leaders to take a very good advantage of this to help the people realized every potentials they could emancipate through the help of their leaders, the government are not trying alot in this regard, the country is too dependent on foreign countries for it sustainability of its economy, this is totally wrong, they have to wake up to begin with something that their people will also have to depend on.

Bangladesh is limping because of their growing friendship with China and also due to government's failure to provide alternative sources of income to the citizens.

Read this article to know more about their Chinese loans and it's forex issues -

https://asia.nikkei.com/Economy/Bangladesh-s-looming-debt-bills-to-China-Russia-fuel-forex-fears

They should learn from Srilanka!

The International Monetary Fund (IMF) in its latest update has said the world economy is limping. This assessment is the aggregate of economic performances of all countries -- developing, developed and emerging. Bangladesh as a developing country, recently elevated to lower middle -income category, cannot be an exception to this global trend. Even though incipiently fragmented, we are still integrated into the globalised economy significantly enough to expose us to exogenous shocks.
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