Global pandemic Covid-19 will hit South Asian economy
Experts fear that the global pandemic corona will cause economic woes in South Asia. Although from the points of death and infected conditions are not so alarming so far, still developing countries in South Asia are likely to face adverse financial impacts. The speeding wheel of economy can become quite steep.
The fears were reported in a World Bank report. It said, "South Asia is in an adverse economic situation. The tourism industry is in turmoil, the supply system is disrupted, there is no demand in the textile industry and there is also a threat to the buyer or investor.
According to the World Bank's forecasts, the situation arising from the spread of the corona could lead to a recession, a country or even a great recession in any South Asian country. The growth is likely to decline, which might come down even to the stage of last 40 years.
Statistics show that in the current financial year, the economic growth rate in the South Asia region is likely to decline from 1.8 percent to 2.8 percent. However, the World Bank forecasted financial growth of 6.3 percent in the region before the global coronary infection.
But now, the World Bank claims that Maldives will be the worst affected by the corona pandemic. Maldives' GDP, which is largely dependent on the tourism industry, can go down by 13 percent. On the other hand, in Afghanistan and Pakistan, it could go down by 5.9 percent and 2.2 percent respectively. India is the heavyweight of the South Asian economy. In this country, the economic growth rate will revolve from 1.5 percent to 2.2 percent. Corona-situation before that was between 4.8 percent and 5 percent.
Other countries in the region will also have to endure the downward pressure of growth. Particularly those who depend on the garment industry and the manpower sector will be under great pressure. The economies of migrant labor-dependent countries will also stumble.
Researchers have not yet been able to pinpoint exactly how the damage will be caused by the noise and how some countries will look. However, they are sure to increase the economic risk as the primary forecast. Of course, the danger to the countries of the region will depend on their ability to deal with crisis situations and their ability to plan and implement programs.
Overall South Asian countries need to be alert against the economic challenges posed by corona, as well as the economic challenges. Short and long-term monitoring should be also taken into account to face the potential dangers of corona's. Alternative ways must be evolved to overcome the danger of slowing growth.
Former Chairman of the Department of International Relations of Chittagong University Dr. Md Kamaluddin told barta24.com, ‘the impact of the concentrated economic crisis across the world is bound to come in the region as well. Social instability for corona will result in stagnation in the services, production and investment sectors. This will reduce revenue in the tourism, hotel and hospitality sectors.’
Dr. Kamal said, ‘the contraction of the garment industry and labor market will also have an impact in South Asia, which is an important sector in the region. In areas where the South Asian economy is mainly dependent, the overall economic indicators of the region will decline in response to less exposure to corona.