The report, titled ‘Bangladesh Economic Update-2022’, suggested the government offer policy support and facilitate investments for diversifying the export basket.
“Economists are predicting a gradual reversal of trade liberalisation as the geopolitical fault lines are increasingly becoming more pronounced, leading to de-globalisation,” the report was quoted as saying by Bangladeshi media reports.
The over-reliance on apparel exports may prove to be a major hindrance to sustaining Bangladesh’s economic growth in the next 10 years, according to a recent report by consulting firm Lightcastle Partners, which said new challenges will emerge as the country will cease to benefit from trade benefits accrued to its least development country status.
It suggested the policymakers undertake a series of policy reforms and reduce red-tape, primarily to facilitate ease of doing business.
International investors will have to be wooed as well to create jobs and facilitate technology transfer, it said.
Large-scale investment in education will also be required for improving the overall skillset of the working population and contribute to growing human capital, it said.
Aa a notable percentage of the economically vulnerable population has slid back to poverty, comprehensive social safety net arrangements and livelihood projects have to be implemented by the government and development agencies to reduce inequality, the report suggested.
The depleting foreign reserve has to be made a priority in the short-and medium-term and adequate steps in maintaining a healthy reserve have to be explored continuously, the report added.
Fibre2Fashion News Desk (DS)
