KOTRA Bangladesh Newsletter 2020 Q2 Overview
The KOTRA Dhaka newsletter for Q2 2020 is a COVID-19 pandemic special issue. It covers the economic shock following the nationwide lockdown from March 26, the sharp decline in apparel (RMG) exports, government stimulus measures, Korean company emergency support outcomes, and remote consultation guidance. It also analyzes structural changes to Bangladesh's business environment caused by the pandemic.
COVID-19 Economic Impact
Manufacturing utilization dropped to 30% during the 66-day lockdown. Apparel exports saw order cancellations of roughly $30B during April and May. Remittance flows increased through official channels as informal channels were constrained, while unemployment rose above 30%.
| Indicator | Pre-COVID | Q2 2020 | Change | Note |
|---|---|---|---|---|
| GDP growth | 8.2% | 3.5% | -4.7%p | annualized measure |
| Apparel exports | $3.5B/month | $1.8B/month | -49% | cancellations of $30B |
| Manufacturing utilization | 85% | 30% | -55%p | lockdown period |
| Workers' remittances | $1.5B/month | $1.8B/month | +20% | formalization of informal channels |
| Unemployment rate | 5% | 33% | +28%p | including informal sector |
Government Stimulus Package
The government announced a total stimulus package of $11.2B (3.5% of GDP) in four phases. Key measures included wage support for garment workers, emergency loans for SMEs, agricultural subsidies, and expanded social protection.
Korean Company Support and Remote Shift
KOTRA Dhaka provided emergency support to 35 Korean companies, including lockdown updates, logistics alternatives, and coordination with the Korean Embassy. From April, remote buyer consultations began, and 25 matches were concluded during Q2. The office also launched its first online market mission in the infrastructure and power sectors.