Amidst speculations of the impending effect of British exit from the European Union on Bangladesh’s economy, especially for the garment sector which counts UK as one of its major export destinations, experts have ruled out any long-term impact of ‘Brexit’ on the country’s economy.
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They made this observation at a discussion on ‘State of Economy’ organised by the Board of Investment (BoI) in Dhaka recently.
“The UK’s decision to leave EU may create some short-term challenges, but it will not impact (Bangladesh economy) significantly,” underlined Biru Paksha Paul, Chief Economist of BoI who presented the keynote paper at the event, which was attended by BoI Executive Chairman SA Samad (chaired the discussion) and former Secretary Waliul Islam (chief guest).
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“If any sort of economic stagnancy is created in the United Kingdom due to its exit from the European bloc, the demand for Bangladeshi apparel products will not decline in the UK as Bangladesh exports only basic products. We had seen during the global recession in 2007-2008 that Bangladesh posted record growth in exports,” Paul maintained.
As per the BoI Chief Economist, of the country’s total export transactions, 82 per cent transactions are conducted in the US Dollar and the rest 18 per cent in Pound, including 4 per cent in the Great Britain Pound.
