Moody’s: Terror attack has long impact on Bangladesh economy
Global credit-rating agency Moody's Investor Service proposed in a recent analysis about the impact of terrorism that has been plaguing Bangladesh. The agency generally has "political risks", factored into govenrment bond rating calculation and so far the nation's vulnerability has been moderate. This is subject to change in the wake of recent developments.
The Agency, particularly focused on the investor confidence and external payments standing, through diminutive foreign direct investments, especially towards the main forerunner, garments exports. This sector and textile, contribute to over 80% of total export share. Both of these are vital for growth and are stimulated by FDI.
Despite stringent competition from Vietnam and Asian countries, garments exports performed and exports grew 9.2% y-o-y between mid 2015-2016. Economic growth has been strictly steady as well, amid challenging conditions. Political upheavals have not historically shown much propensity to impact FDI or growth, but this time Moody's is speculating otherwise.
The reality is already being thought of. Japanese owners of Uniqlo in Bangladesh have already been tightening business trips to Bangladesh from attacks last year and now they are asking staff to stay indoors. Other global names buying from Bangladesh are also apprehensive. A change in the face of Bangladeshi garment may be imminent. Read in the link below:
Uniqlo suspends Dhaka travel, others reviewing operations
Global credit-rating agency Moody's Investor Service proposed in a recent analysis about the impact of terrorism that has been plaguing Bangladesh. The agency generally has "political risks", factored into govenrment bond rating calculation and so far the nation's vulnerability has been moderate. This is subject to change in the wake of recent developments.
The Agency, particularly focused on the investor confidence and external payments standing, through diminutive foreign direct investments, especially towards the main forerunner, garments exports. This sector and textile, contribute to over 80% of total export share. Both of these are vital for growth and are stimulated by FDI.
Despite stringent competition from Vietnam and Asian countries, garments exports performed and exports grew 9.2% y-o-y between mid 2015-2016. Economic growth has been strictly steady as well, amid challenging conditions. Political upheavals have not historically shown much propensity to impact FDI or growth, but this time Moody's is speculating otherwise.
The reality is already being thought of. Japanese owners of Uniqlo in Bangladesh have already been tightening business trips to Bangladesh from attacks last year and now they are asking staff to stay indoors. Other global names buying from Bangladesh are also apprehensive. A change in the face of Bangladeshi garment may be imminent. Read in the link below:
Uniqlo suspends Dhaka travel, others reviewing operations
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