A global recession can hit Bangladesh’s export income and remittances, two life lines of the country’s economy. Recession can hurt Bangladesh’s export diversification as nearly 16 per cent of the country’s exports consist of non-readymade garment products. If there is a recession many companies in the Middle East would be out of business in which a good number of Bangladesh workers are employed. These workers can lose their jobs, having an adverse impact on the country’s remittances.

The recent slowdown in the US economy, dismal German economic performances, lowest ever industrial production growth in China in recent times, and a contraction in the economies of Argentina, South Africa and Iran are warning signs of a possible global economic meltdown.

Though Bangladesh is getting some benefits from the US-China trade war, economic diversification can help Bangladesh avoid the impact of a possible economic recession. However such diversification needs investments. Value addition is one way out and being sustainable is another. The country has to take initiatives to capture more low-end apparel manufacturing relocation from China. Bangladesh exports low-end garment products. Apparel exports contribute 84 per cent to the country’s total export earnings. Bangladesh has already witnessed double-digit growth during the July-May period of the current fiscal year.