At the beginning of 2022, Bangladesh's economy seemed to be on course to grow at a faster clip buoyed by plummeting coronavirus infections, rebound in economic activities and the reopening of global economies.
But things began worsening in late February following the Russian invasion of Ukraine. Although neither Russia nor Ukraine is a large export destination or sourcing nation for Bangladesh, they are vital to the countries on which the country relies to drive its growth.
But as the Ukraine war, Covid-19 flare-ups in China, rising inflationary pressures, and continued disruptions in the global supply chain have raised the spectre of recession globally, Bangladesh might not escape unscathed if a global economic downturn hits.
With inflation at the highest level in 40 years and the central bank of the US taking increasingly aggressive action to cool consumer demand and prices, the risk of a global recession is on the rise, according to Morgan Stanley economists.
"We live in the most chaotic, hard-to-predict macroeconomic times in decades. The ingredients for a global recession are on the table."
Bank of America and Deutsche Bank are among the Wall Street firms predicting a recession in the next two years, largely because of the monetary policy tightening.
Wall Street tumbled toward its lowest point in more than a year on Monday amid concerns about rising interest rates, as well as a slowdown in China.
"For the moment, the odds of a recession in Europe, the US, and China...
Read Full Story: https://www.thedailystar.net/business/economy/news/renewed-threats-economy-global-recession-looms-3022536
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