Overconfidence will not help us, and we must continue to play our cards right
It goes without saying that 2020 has not been a good year for the global economy. Bangladesh has also taken a hit, derailing a number of our targets. Nevertheless, out of this overall grim scenario, some positive statistics have emerged.
It has been reported that Bangladesh has experienced a healthy 5.24% provisional GDP growth in FY19-20. Exports have risen by 0.6% (in July) after suffering a colossal decline back in April. Imports are also on the up. The most impressive area, however, has been our remittance performance, hitting a record high of $18.20 billion, and our foreign exchange reserves also hitting a record high of $37.1 billion.
Clearly, this is a mark of resilience in our economy. The Covid-19 pandemic, though it has hurt us, has not defeated us. The economy has shown that it will adapt, and it will prevail.
But while it is good to stay hopeful, overconfidence will not help us, and we must continue to play our cards right. If the outlook further weakens in the US and in the European Union, which are export destinations for Bangladesh goods, our exporting sector could receive a major blow in the near future. Remittance earnings, doing so well right now, should also not be taken for granted. Falling oil prices in the Middle East could adversely affect the prospects of our migrant workers there.
With both India and Pakistan experiencing a considerable slowdown of growth, Bangladesh is to be commended for being one of the better performers in the region. This is all the more reason to not take our success for granted, and be smart about policy -- policy that continues to encourage local investors as well as attract more foreign investors. Bangladesh will have to find its footing among shifting global dynamics in the economy.