Paragraph On Global Recession
The world economy is currently passing
through a phase of recession. Economic analysts agree that the recession has by
now crossed the critical threshold of eleven months which has been the average period
of longevity for the six major post-war recessions. The recessions in the
global economy could not but have severe negative implications for world
trade. It has had important consequences for Bangladesh’s export sector performance
in recent months. World trade, which registers a robust growth of 12.5% in 2000
began to slow down as recession strengthened its grip on the economics of the
major trading blocks and countries. The state of the economy obviously had a
dampening impact on consumer confidence. The consumer expenditure index in the
USA is down by 1.8% which is the fastest drop since the late 1980s and an all-time
low since the early 1990s. if the downturn continues in the coming months, the recession
is likely to get more severe. With attendant negative consequences and
implications for exports of Bangladesh. The state of the global economy is
likely to have a stronger impact on the Bangladesh economy now than at any time
in the past. The impact of the state of the global economy would continue to be
increasingly felt in terms of the country’s macroeconomic performance, GDP
growth rate, external sector performance, foreign exchange reserves, and health
of the financial institutions. Bangladesh does not have a captive market, she
has to compete in an increasingly competitive global environment. Thus, there
is hardly any cushion available to Bangladesh to mitigate the adverse impact of
the ongoing recession. It is true that the ongoing global recession should,
thus serve Bangladesh both as a wake-up call and as a warning bell.
