




































Bangladesh Journal of Multidisciplinary Scientific Research 

 Vol. 4, No. 1; 2021 

ISSN 2687-850X   E-ISSN 2687-8518  

Published by CRIBFB, USA 

 

40 

IMPACT OF COVID-19 ON THE OVERALL SECTOR OF 

BANGLADESH ECONOMY: AN OVERVIEW 
 

 

Marina Akter 

Lecturer 

Department of Islamic Studies 

Faculty of Social Science 

Leading University, Sylhet-3112, Bangladesh 

E-mail: marina.economics17@gmail.com 

 
 

ABSTRACT 

After being affected by the Covid-19, Bangladesh also faces challenges related to this pandemic 

like other countries globally. The impact was spreading to all sectors of the economy. The 

principal purpose of this study is to give an overview of the pandemic's impact on the economy 

as a whole and summarize recommendations for mitigating the pandemic's devastating 

effects. This study employs descriptive and exploratory techniques based on secondary data 

collected from journals, newspapers, published articles, websites, and the internet. The 

discussion result reveals that, more or less, all the sectors of the economy are affected by the 

Covid-19 pandemic, not only public health. The study found that Manufacturing industries face 

losses, and workers are also affected by the various uncertainties about their earnings and job 

security. The country's education industry has been hit hard. In a new typical circumstance, 

students are unsure about studying and are concerned about the academic delay. The Covid-19 

pandemic has had an impact on the mental health of students as well as the general public. The 

study recommends that the government's intervention, in conjunction with the engagement of 

relevant sectoral stakeholders, has the potential to recoup losses and design a new strategy or 

solution to address the problem.  

Keywords: Covid-19, Coronavirus Pandemic, Sectoral impact on Economy, Manufacturing 

Industry, Education, Employment, Agriculture. 

 

JEL Classification Codes: E71, A31, F6, I1. 

 

INTRODUCTION 

SARS coronavirus 2 (SARS-CoV-2) is a new coronavirus associated with severe acute 

respiratory syndrome. It was initially identified from three persons who had contracted 

pneumonia as a result of the Wuhan cluster of acute respiratory disease cases. Wuhan, the capital 

of central China, is the most populous city. Coronavirus disease (COVID-19) is a virus-borne 

infection caused by the SARS-CoV-2 viral. COVID-19 was declared a global pandemic on 

March 11, 2020 by the World Health Organization (WHO).Bangladesh was recently 

recommended as a developing country by the World Bank for the year 2026. The covid-19 



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outbreak and the world economy's downward trend cannot be a hindrance to accomplishing the 

objectives.  While the rest of the world is facing an economic decline as a result of the COVID-

19 epidemic, Bangladesh's economy has escaped a 2020 contraction. According to a forecast by 

the Asian Development Bank, the country's yearly GDP growth rate would continue to rise 

between 2021(5.5%) and 2022(6.8%) (Asian Development Outlook Update (ADOU), 

Serptember2021). However Kumar & Pinky, (2020) found that with the impact it has had on the 

country's social, economic, and health sectors, the COVID-19 epidemic has slowed GDP growth 

and contributed to rising poverty, inequality, and unemployment across the country. 

 The world economy has been severely harmed, and practically every country has seen 

the detrimental impact of Covid-19. Global economic growth was badly harmed in the first half 

of 2020, and the global economic growth prediction for 2020 was -4.9 percent. (World Economic 

Outlook update, June 2020).It has been noticed that any pandemic has a multiplicity of effects on 

the planet, with long-lasting consequences. Researchers have evaluated the impact of COVID-19 

on a variety of sectors and discovered that the unemployment rate has risen due to the corona 

pandemic. 

 

 
 

Figure 1. Estimates of the working hours and employment loss in 2020 

Source: ILO Monitor, January 25, 2021 

 

 This pandemic has had severe adverse effects on the Turkish economy's employees, 

customers, supply chains, and financial markets. With the high unemployment rate, the CPI of 

Turkey increased by 11.86% annually and 0.57% monthly in March 2020. Turkey's Economic 

Confidence Index fell from 97.5 to 91.8. A higher CDS premium might cause pressure on the 

Turkish foreign borrowing interest rate to rise (Açikgöz & Günay, 2020).Because of Covid-19, 

(Thorbecke, 2020) identified idiosyncratic factors that harmed airlines, aerospace, real estate, 

tourism, oil, breweries, retail apparel, and funerals. Additionally, he discovered that 

macroeconomic factors contributed to losses in sectors such as manufacturing equipment, 

machinery, and electronic and electrical equipment in the USA economy. Like other countries 

Bangladesh also affected by the coronavirus pandemic. 

 This study will focus on the issue of how the coronavirus pandemic affects the different 

economic sectors and social life of Bangladesh. 

 

METHOD 

The nature of this study is both descriptive and exploratory. Secondary data were gathered from 

a variety of sources, including journals, newspapers, published articles, the news media, the 



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42 

internet, the websites of the World Health Organization (WHO) and the Government of 

Bangladesh (GoB), as well as data from other surveys and research. 

 

COVID-19'S SECTORAL IMPACT (RESULTS AND DISCUSSION) 

The impacts of covid-19 on various sectors will be discussed in this section. The discussion will 

be based on secondary data gathered from a variety of different sources. 

Impact on Agriculture Sector  

BRAC Institute of Governance and Development found that COVID-19 reduced the estimated 

2020 yield of Boro rice by seven percent, amounting to BDT 3,687 crore in lost revenue for the 

country. Low demand and reduced production combined with high input prices resulted in a 40% 

loss for Boro growers in 2020. According to Bashar and Atik (2020), around 350,000 dairy 

farmers in Bangladesh are attempting to escape the coronavirus epidemic by not selling about 

27,000 tons of milk per day. It was discovered by (Zabir et al., 2021) research that insufficient 

monitoring systems, employment losses, and constrained transportation are the major obstacles 

to the nation's ability to meet its food needs. The lockdown drastically restricts the farming 

community's movement, mostly hurting farm laborers, who must generally move from job to job 

in order to earn a wage. Numerous concerns associated with COVID-19 consequences were 

identified in the survey findings, including loss of labor mobility, rising labor costs, restricted 

transportation, loss of food security and dietary diversity, decreased incomes, and increased 

consumer uncertainty (Shoaib & Arafat, 2020). 

To address the pandemic's impact on agriculture, the Bangladesh government has already 

allotted Tk 100 crore to the agricultural ministry for the mechanization of crop harvesting. 

Additionally, the government will allocate another Tk 100 crore in this direction (The Daily Star, 

April 13, 2020)  
"Bangladesh Bank will formulate a new refinancing scheme of Tk 5,000 crore to pump running capital into 

the agricultural sector. We'll create this Tk 5,000 crore stimulus package only for the agricultural sector. 

We'll disburse money from this fund among farmers at only 5 percent interest," (Prime minister Sheikh 

Hasina) 

The following actions or recommendations need to implement: 

 More incentives are needed to encourage innovative research and activities that increase 

productivity, minimize production losses, and boost value-added activities in agriculture 

and non-agricultural businesses. There is a need for further research and activities related 

to improving the design of financial technologies for farmers and encouraging more 

participation in these economic systems such loans and credit systems, agricultural 

insurance facilities, etc. Policies and initiatives that encourage culturally appropriate 

institutional and organizational interventions (Gregorio & Ancog, 2020). 

 In terms of policy, it's clear that: Continued supply chain monitoring and industry 

involvement are required. The proactive creation of solutions to cope with absenteeism 

and other supply chain risks and the assessment of the economic and health benefits of 

giving more public resources to offer wider access to food pickup and delivery services. 

(Gray, 2020) 

 Poudel P. B. et al. (2020) vision is centered on sustaining and improving supply chain 

resilience. The government should enact pandemic-control measures that do not disrupt 



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the food supply chain and do not jeopardize their citizens' food security. COVID-19 and 

its Global Impact on Food and Agriculture. 

  (Varshney, Kumar, Mishra, Rashid, & Joshi, 2021) discovered that the farmers 

benefitted from the emergency assistance package. Direct cash transfers are used by 89-

94 percent of families. In India, a minimum income support program that provides cash 

transfers to farmers enhanced small and marginal farmers' seed purchases during the 

cropping season.  

 

Impact on Manufacturing sector 

After China, Bangladesh boasts the world's second-largest clothing industry. It makes almost $35 

billion annually from exports to the US and Europe and employs roughly 4 million people, 

mostly rural women. The garment sector generates 84.21 percent of total exports and 20 percent 

of GDP for the country (Antara, 2020).The pandemic canceled or suspended almost $3 billion in 

orders, according to Bangladesh Garment Manufacturers and Exporters Association President 

Rubana Huq (Aslam, 2020). 

Workers in the RMG industry are also affected by anxiety about the future of their 

careers because of the uncertainty surrounding it. Reports of rapes and suicide instances among 

female RMG employees during the COVID-19 epidemic might have long-term effects on their 

mental health (Kabir, Maple, & Usher, 2021). 

Due to a lack of raw resources, manufacturers must cease operations. A survey found that 

93% of Bangladeshi garment producers experienced delays in raw material supplies due to the 

epidemic. A survey revealed that 72.4% of Bangladeshi firms couldn't pay their workers when 

they were furloughed. When orders were cancelled and workers were fired, over 80.4% of 

Bangladeshi suppliers said they couldn't compensate them (Anner, 2020). 

 

 
 

Figure 2. Trend of total RMG export in 2019-20 

Source: Prepared by (M.R.Islam, et al. 2020) 

 

Table 1. Impact of COVID-19 on RMG factors 

 

 

 

                                        Source: Majumder, 2021 

Factory reported Export cancelled Workers affected 

1,150 3.18 billion USD 2.28 million 



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Figure 2 illustrate the scenario of impact on RMG (Readymade Garment) export due to 

pandemic. Export decrease dramatically from March to April 2020. About 2.28 million workers 

of RMG sector are affected (Table 2). 

 To protect employees' health and general wellbeing during the COVID-19 pandemic, 

global health communities, BGMEA, international brands/retailers, the GoB, and the 

International Labour Organization (Kabir et al., 2021)suggest immediate coordinated and 

effective efforts by all parties. 

 

Impact on Education 

The proliferation of coronavirus, which has caused several problems, has prompted many 

countries to close their educational institutions. The coronavirus pandemic has had a profound 

effect on education and public health. A study conducted by Salmi, Arnhold and Bassett (2020) 

found Limited resources and poor infrastructure have made it impossible for governments in 

many developing countries, like Bangladesh and Nepal, to make the change smoothly. 

 According to Biswas et al. (2020), the majority of university students have a favorable 

attitude toward mobile learning. This study established that mobile learning is extremely 

beneficial for resolving study gaps during this COVID-19 pandemic period. 

 

 

 
 

Figure 3. Flipped classroom activities 

Source: Khan and Abdou (2021) 

 

 

 Khan and Abdou (2021) offer a flipped classroom idea through which during the 

COVID-19 epidemic, developing nation’s higher education institutions can continue teaching 

and learning without spending money or planning training. 

 In an online course, increased engagement improves the overall performance level. 

According to research, increasing the amount of debate between students and teachers can lead 

to better interactivity (Townsend et al., 2002). Students' participation in lectures can be boosted 

by allowing them to take part in online classes. In addition, students may be more engaged if 

they discuss and ask questions about case studies (Smith & Diaz, 2004). 

 



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Figure 4. Interactive online class during Covid-19 

 

 According to figure 4, a teacher can introduce any course topic using six steps. It assists 

students in overcoming monotony and increasing their excitement for online classes. After 

mentioning any case, the teacher may inquire the pupils about their familiarity or unfamiliarity 

with the subject. They are given a few minutes to gather their thoughts to contribute to the 

conversation. At stage 5, the teacher can explain the topic using their preferred way. Finally, 

following a threadbare discussion, the course instructor will conduct a question and answer 

session. 

 Meo, Abukhalaf, Alomar, Sattar, & Klonoff (2020) mention that as a result of the 

extended home confinement, students' study habits and work performance deteriorated, leading 

to increased stress and dysfunctional learning practices. Job instability was discovered in a 

survey of 100 private education sector employees conducted by (Imran & Ahmed, 2020). The 

majority of private educational institutions rely on their own revenue from student tuition fees; 

hence, the difficulty in managing them during the stalemate condition and their staff are also in 

financial difficulty. Just around 25%-30% of private sector educational institutions offer online 

courses; the remainder are at a standstill. Numerous kindergartens, schools, and universities have 

ceased operations entirely owing to the pandemic scenario. They are unable to pay their staff for 

six months. (Imran & Ahmed, 2020). 

 Financial factors had a significant impact on student's mental health and academic 

performance: students lost tuition or part-time jobs, were unable to afford new online classes, 

parents' income decreased due to the COVID-19 pandemic, and students dropped out of the 

academic year or semester due to a lack of funds (Dutta & Smita, 2020).Students at Bangladeshi 

universities have been suffering from immeasurable psychological stress symptoms as the dread 

of academic delay has progressed throughout the COVID-19 period, which is very clear (Hossain 

et al., 2021). A decrease in appetite, physical inactivity, weight gain or obesity, weakness, 

giddiness, weariness, and a sluggish sense are all symptoms of remaining at home (Dutta & 

Smita, 2020). All of this hindered pupils' learning flow and deflated their excitement. 

 

There are some recommendations related to education during Covid-19: 



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  Universities should develop all-inclusive online educational programs in collaboration 

with internet service providers to reach students living in remote locations with or 

without gadgets. Moreover, parents should be urged to establish a welcoming and 

constructive home atmosphere for university students without placing pressure on future 

academic and professional careers (Islam, 2020). 

 (Hossain et al., 2021) suggests that intense psychological treatment, economic stability, 

and seamless educational programs to close the academic gap must be maintained by 

joint efforts by the government, universities, and educators.  

  Online class training and outcome-based education (OBE) can assist both employers and 

students overcome obstacles. Teleworking like online classes and exams help stabilize 

the financial condition, which is the major worry for the owner now. Employees can use 

teleworking to normalize this divide and avoid social isolation. (Imran & Ahmed, 2020) 

 Families, friends, and the government must all work together to reduce pupils' social, 

physical, emotional, and educational disturbances. It is advised that immediate efforts be 

made to provide technological resources and enhance internet connectivity in order to 

ensure that online education may continue uninterrupted in Bangladesh in order to meet 

the educational demands of tertiary level students (Dutta & Smita, 2020).  

Impact on Employment 

Mr. Mostafiz Uddin, the Managing Director of Denim Expert Limited, predicted that a small 

number of clothing employees will lose their jobs as a result of the COVID-19 (Uddin, 2020, 

March 24).(Sakamoto, Begum & Ahmed, 2020) observed that significant economic losses are 

unavoidable, and many garment sector workers may be unable to find work for a longer duration. 

Out of Bangladesh's 63 million employees, about 25 million earn a wage/salary, with over 10 

million earning daily pay. Around 4.5 million casual workers in construction, transportation, 

trade, food and lodging were severely impacted by the Covid-19 (Islam, 2020) 

 

Table 2. Employments under threat of being lost in the world 

 

Industry No. of Employment in threat 

RMG 10.5 million 

Dairy 10.2 million 

Poultry 5 million 

Transportation 5 million 

Tourism 1 million 

                Source: Shaminnta, Gope, and Sumaiya (2020) 

Across industries, a large number of people may lose their employment. Although 

employees in the dairy, poultry, transportation, and tourist industries face job loss, it is the RMG 

business that faces the greatest job loss (Table 2).Furthermore, a sizable number of self-

employed workers, around 5.19 million self-employed workers in the urban informal sector, live 

in insecure circumstances (Islam, 2020) 

Most RMG firms have decreased worker pay. If they regularize the pay, the workers may 

be more motivated. A minimal risk premium may be imposed for garment workers who contract 



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COVID-19 or die from it. In this epidemic condition, 1-2 percent profit sharing with workers 

may be motivating (Islam, Hassan, Hassan, Rahman, & Nargis, 2020). 

 

Impact on Social Life 

Various factors related to social life have a significant impact on economic well-being. So we 

have to find out the problems that are created by the covid19 to address them.  Domestic 

violence such as child marriage, marital rape, and physical torture continuously increased during 

pandemics. There were 4,622 women emotionally tormented in June 2020, 1,839 physically 

assaulted, 203 sexually molested and 3,009 women who had financial limitations placed on them 

by their spouses. (Manusher Jonno Foundation, 2020).According to another study, 107 women 

were murdered by their spouses between January and June of 2020, but only 74 cases were 

reported. Members of the husband's family were responsible for the deaths of 30 women, while 

members of the wives' families were responsible for the deaths of 26 women. Only 33 of the 

individuals filed any claims (Ain o Salish Kendra, 2020). 

 (Mahmud & Islam, 2021) discovered that social stigma is caused by disinformation, 

uncertainty, fear of responsibility, administrative failure, and a lack of faith in treatment. 

Additionally, their study demonstrates that stigma has a variety of negative consequences, 

including health risks, harassment, discrimination, life insecurity, psychological distress, loss of 

social and emotional capital, shattered family bonds, and social solidarity, all of which act as 

barriers to social well-being. 

 The internet has become vital in modern life, yet regular usage might harm one's 

physical and emotional health.  Extra free time during pandemic may have caused ennui among 

internet users. Its overuse during the epidemic may have aided problematic internet usage 

behavior, as noted by (Islam et al., 2020).They discovered that people from nuclear families 

utilize the internet more than people from extended families. 

There are some ways to overcome the problem in social life described by other authors are the 

following: 

 It is strongly suggested that active surveillance and effective monitoring mechanisms be 

developed to help minimize the spread of disinformation via social and electronic 

media, as well as to enhance the state of mental health conditions during the pandemic 

(Hossain et al., 2020). 

 To protect mental health from Covid-19, a Confident and satisfying living place and 

society can help (Rahman et al., 2021). 

 To safeguard the health of older persons against covid-19, it is necessary to confirm the 

attitude of social care and health systems in ensuring welfare, promoting preventative 

measures, and facilitating access to healthcare (Hossain, Mazumder, Tasnim, Nuzhath, 

& Sultana, 2020).     

 It is essential to introduce a time-oriented policy and implement care monitoring plans in 

the country, which may help manage the pandemic and nurture public mental health to 

combat COVID-19 related psychological challenges (Islam, Bodrul-Doza, Khan, 

Haque, & Mamun, 2020). 

 Medical facilities such as testing, tracking, formal quarantining, and special treatment for 

coronavirus in coronavirus hospitals should be strengthened and decentralized to 

protect social stigma. This can be done by allocating significant state funds and also by 

implementing public-private partnership initiatives for health management (Mahmud & 

Islam, 2020). 



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Impact on Tourism Sector 

To stop the virus from spreading, all governments have enforced lockdowns and limited travel. 

Tourism is linked to human movement, which is hampered by travel restrictions. Tourism in 

Bangladesh is slowly increasing due to a large domestic travel market. Due to the epidemic, both 

domestic and foreign visitors canceled. However, due to various travel restrictions, all flights 

have been canceled. As a result, businesses lose money and workers lose jobs (Deb & Nafi, 

2021). According to industry experts, over 4,000 million people are employed by tour operators, 

hotels, resorts, airlines, and food businesses that are currently fighting to stay afloat. According 

to a research released by the Tour Operators Association of Bangladesh (TOAB) in April 2021, 

the loss is expected to be Tk 57 billion by the end of 2020. The National Board of Revenue 

(NBR) received Tk 3.28 billion in travel tax during the previous fiscal year, less than half of the 

amount collected the year before. Tk 7.66 billion in travel tax was collected in FY 20. By 2021, 

air traffic would have decreased by 60%, while the airline sector will have lost US$370 billion 

due to the epidemic, according to an ICAO assessment released on January 15th (Mala, 2021). 

 Local residents who rely on visitors stated that they would be able to compensate for the 

closure's losses. According to the Rangamati Chambers of Commerce and Industry, travel 

operators together lost Tk 2.15 crore. While the second wave of the epidemic was ravaging the 

country, the government authorized all tourist attractions, community centers, resorts, and places 

of leisure to reopen on August 19 with a 50 percent capacity and observe all Covid-safety 

standards (Dhaka Tribune, August 19, 2021). 

 COVID-19's effects on tourist employment place further strain on tourism education, 

which has been badly impacted by the pandemic. Apart from the virtualization of teaching and 

learning processes, tourism students and graduates must contend with the cessation of industry 

internships, recruiting, and dubious career options (Sigala, 2020). 

 

CONCLUSION 

Bangladesh is no stranger to international tragedies and disasters. Natural disasters and 

significant humanitarian crises are nothing new for Bangladesh. There is no comparison to the 

COVID-19 outbreak. Even though Covid-19's economic shock did not put the economy in 

jeopardy, the long-term impact from global uncertainty can nevertheless be highly damaging. 

And it requires an unprecedented plan to address the immediate threats of COVID-19 to all 

sector's long-term threats to the country's economy. The significant findings reveal that the 

industrial sector of the economy is mainly affected, and the agricultural industry is affected by a 

damaging supply chain. The employee, students, staff related to education are adversely 

oppressed. The unemployment problem is enhanced quickly. This report gives an overview of 

the pandemic's impact on the economy as a whole and summarizes recommendations for 

mitigating the pandemic's devastating effects. This analysis will help decision-makers to 

implement better plans and strategies to lessen the impact of pandemics on various economic 

sectors. An intervention by the government, along with participation from relevant sectorial 

stakeholders, might help recuperate costs and devise a new solution to the problem. 

 

FURTHER STUDY DIRECTION 

There is significantly little quantitative research found related to Covid-19. It is urgent to identify 

critical variables that make us unable to protect from the negative consequences of covid-19. 

Various econometric models can be used to find the correlation among the variables and short-

run, long-run effects of the variables on the economy. 



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49 

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