COVID-19 and Bangladesh : macroeconomic impacts and policy choices

Date

2021-12

Journal Title

Journal ISSN

Volume Title

Publisher

Centre for Policy Dialogue (CPD)

Abstract

Bangladesh, like most of the countries in the world, had to restrict mobility and economic activities to tackle the spread of the COVID-19 virus. Indeed, the pandemic has been exerting pressure on the economy through both global and domestic shocks leading to a detrimental impact on major macroeconomic correlates of the country. The present study urges that Bangladesh will need to pursue a countercyclical fiscal policy stance in the face of deceleration in aggregate demand. The study further maintains that greater fiscal resources should be directed towards those people, households and enterprises having a higher propensity to consume and invest. From this perspective, the study strongly advocates for direct cash transfers, food support, and enhanced public expenditures in health and education rather than a general increase in public expenditures and subsidised credit flow.

Description

Keywords

COVID-19, ECONOMIC IMPLICATIONS, MACROECONOMICS, FISCAL POLICY, BANGLADESH, SOUTH ASIA

Citation

DOI