The New Nation - Internet Edition

Syful Islam

Export earnings during October this year has declined by 8 per cent compared to the same month of the previous fiscal year, learnt to be the affect of the global economic downturn.

Experts believe that the ongoing global economic recession would hit hard Bangladesh export as well as whole economy creating an awful state. Economists have termed the New Year 2009 as crucial for Bangladesh economy and urged the government to take appropriate measures to face the challenge successfully.

Statistic showed that raw jute export declined by 16 per cent during July-October period of the current fiscal year as the main three importers China, Pakistan and India have nearly stopped raw jute purchase being affected by the global economic tsunami.

According to the statistics of the Export Promotion Bureau (EPB), export of October 2008 also could not achieve the fiscal target set by the government. During the month goods worth US$867.69 million were exported against last year's US$941.48 million which is 7.84 per cent less. For the month the strategic export target was set at US$1170.23 million.

Statistics further shows that pharmaceuticals export declined by 23.27 per cent against the target during the July-October period of the current fiscal year. During the time pharmaceuticals worth US$13.12 million was exported which is 3.74 lower than same period of the previous fiscal year.

Earnings from of leather exports also declined during the first four months of the fiscal. In July-October leather worth US$71.24 million was exported to different destination, which is 26.40 per cent less then strategic target and 16.25 per cent less then export of same period of previous year. The target for the period was US$96.80 million.

However, earnings from the tobacco export increased by 98 per cent during the period. Total export earnings also have increased by 31 per cent during the time.

EPB sources said, it will be crystal clear within next month or two, when export statistics of November and December will be available, whether the export slide in October is the effect of global economic recession or not. But primarily they believe that the decline is the sign of the affect of economic downturn.

Meanwhile, multinational development agencies have said that the 49 Least Developed Countries (LDCs) will be the worst victim of the global financial crisis.

The International Monetary Fund said global financial turmoil will continue to have an impact on Asia even after a year. The Asian Development Bank said steps must be in place to prepare for further slowdown next year, given the rapidly deteriorating global economic situation.