The impact of Coronavirus on the economy of

Bangladesh, India and China.

1. Abstract
Coronavirus the name of new pandemic not only takes numerous lives but also destroy
the economy of the major countries from their core. Economists started to believe that the
next recession is not far away and they also anticipated that the next leader of the world
economy will be the countries which follows communalist view. So we can say that the
leadership of the world economy is going to change if this condition held for long term.
So plutocracy started to losing their place. The researcher here tries to analyze the real
impact of coronavirus on the economy of Bangladesh, India and China along with some
crucial suggestions by which they can restructure their economy as well. That’s why the
researcher analyze the impact of this pandemic on the financial market, Tourism sector,
Transport sector, Technological sector, Industry sector etc. of these three developing
countries.

2. Introduction
At present the new name of fear is Coronavirus disease (COVID-19). This is not only kills
the people around the world but also causes economic downturn which destroy the
country in both ends. Coronaviruses are a group of related viruses that cause diseases
in mammals and birds. In humans, coronaviruses cause respiratory tract infections that
can be mild, such as some cases of the common cold (among other possible causes,
predominantly rhinoviruses), and others that can be lethal, such as SARS, MERS, and
COVID-19. Basically, it is a very infectious disease which is caused by a new virus, named
after Covid-19. The outbreak was first identified in Wuhan, Hubei, China, in December
2019, and was recognized as a pandemic by the World Health Organization (WHO) on
11 March 2020. Now it is spreading like tracer bullet in more than 200 countries of the
world with many deaths as well as economic downturn. Coronavirus has a great impact
on the economy of Bangladesh, India and China, simply the whole world’s economy is
being affected by this pandemic. But the developing countries like Bangladesh, India and
China are severely affected by this. Their economy had seen a great downturn for this
pandemic. Here the researcher analyzes the impact of coronavirus on the economy of
Bangladesh, India and China (where the outbreak first identified) and how they can
restructure their economy as well after pandemic stabilizes.

3. Rationale of the study

The 2019–20 coronavirus pandemic has had far-reaching consequences beyond the
spread of the disease and efforts to quarantine it. As the pandemic has spread around
the globe, concerns have shifted from supply-side manufacturing issues to decreased
business in the services sector. Countries which is attacked by this disease face several
death and economic loss. Several countries stock market may face crash if this condition

1|Page
remain unchanged. That’s why the researcher wants to analyze the true impact of it on
the economy of Bangladesh, India and China also with some restructuring
recommendations.

4. Objectives of the study

The broad objectives of this study is to find the impact of coronavirus on the economy of
Bangladesh, India and China and recommend some issues by which those country can
restructure their economy.
Specific objectives afforested below;
 To analyze the present economic condition of this three country.
 To find exact change in economic condition of this three country due to
coronavirus.
 To recommend some issues by which these countries can restructure their
economy along with long and short term suggestions.
 To find which country is the worst sufferer because of this pandemic.

5. Methodology of the study

Data has been collected mainly from secondary sources. Those sources included
below;
As secondary sources of data the researchers have used here numerous websites of
this three country which includes economy related data, some renowned daily
newspapers of Bangladesh, India and China, website of Bangladesh Bank, Central bank
of India and People’s Bank of China, Website of DSE and CSE, etc.
Basically, the researcher analyzes here the overall impact of Covid-19 on the economy
of the stated country. That’s why researcher collect secondary data of these three country
from different websites which is related with the economy and then researcher compare
between these countries to find the worst sufferer.

6. Limitations of the study

Researcher identified afforested limitations of this study;
 Since all the data collected from secondary sources, data can be updated any time.
 Updated data may cause fluctuated result.

7. Impact of Coronavirus on the global economy

GDP Growth Slowdown
The coronavirus outbreak already causes acute human suffering with economic
disruption which originated in China and spread like a tracer bullet throughout the world.
China’s supply contractions lead to economic disruption of other countries because based

2|Page
on this supply of China lot of country organized their production. They are the largest
supplier of raw materials in many sectors. So without the supply other countries economy
also degrades. This lead to decline in global GDP growth to 2.4% in 2020 which was 2.9%
in 2019. This condition may severe if this pandemic not stabilizes.

WORLD'S GDP GROWTH RATE

GDP Growth Rate

3.50% 3.11% 2.97%

2.81% 2.90%
3.00% 2.48% 2.40%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
2015 2016 2017 2018 2019 2020
1

In this chart the researcher tries to show the growth of world’s GDP from the year 2015
to 2020. In 2015, growth rate was 2.81% it decreases in the next year but after that it
suddenly increase to 3.11% because of development in many important sector like
travelling, Petroleum, Pharma sector etc. After that in 2019 it decreases to 2.90%
because of US-China trade war largely. But in 2020 it shows a dramatic decrease in the
eve because of the pandemic corona which shut down the activity of all sector like
travelling, Share market, Gold and oil industry etc. In sports there are also a great impact
of corona virus. Such the cancellation of Willemdon 2020 which causes 220 Billion Pound
losses. There are many events which postponed by the respective authority.
Share market crash
The 2020 stock market crash is a global stock market crash that began on 20 February,
2020. Multiple indexes such as the Dow Jones Industrial Average, Nikkei 225 and the
S&P/ASX 200 all fell into a correction late February during one of the worst trading weeks
since the financial crisis of 2007–08, thus starting what is now known as the 2020 stock
market crash. Global markets into early March became extremely volatile, with large
swings occurring in global markets. This became colloquially known as Black Monday I,
and at the time was the worst drop since the Great Recession in 2008 which is flamed by
Russia-Saudi Arabia oil war of 2020. All three Wall Street indexes fell more than 12%
when markets re-opened on 16 March. At least one benchmark stock market index in all
G7 countries and 14 of the G20 countries have been declared to be in bear markets. As
of March 2020, global stocks have seen a downturn of at least 25% during the 2020 stock
market crash, and 30% in most G20 nations. Investors fear the spread of the coronavirus

1
Source: World Bank

3|Page
will destroy economic growth and that government action may not be enough to stop the
decline. In response, central banks in many countries have cut interest rates. That should,
in theory, make borrowing cheaper and encourage spending to boost the economy. Many
of the stock market shut down because of that pandemic including Bangladeshi stock
market (DSE, CSE) which gives 10-day common holiday to reduce community
transmission of that disease. India follows that too. Central bankls of 50 countries cut
interest rate for that and many NGOs started to plan reschedule installment due to that
pandemic. In the last three-month stock market loses 15 trillion dollars with historical point
drops since 1932.
Graph 01: Impact of Coronavirus on the stock market

As the pandemic spread the three major indexes decreases since the great depression
of 1987. Nikkei shows 28.7% decrease due to shut down of all economic activities of the
major countries as well as other indexes. This will continue until the condition stabilizes.
Travel Industry among the greatest loser due to coronavirus
The travel industry has been badly damaged, with airlines cutting flights and tourists
cancelling business trips and holidays. Governments around the world have introduced
travel restrictions to try to contain the virus. The EU is banning travelers from outside the

2
Source: Bloomberg

4|Page
bloc for 30 days in an unprecedented move to seal its borders because of the coronavirus
crisis. The analytics firm Forward Keys has estimated that up to 48,200 flights with 10.2
million seats could be affected by the ban, with the biggest impact falling on Air France.
In the US, the Trump administration has banned travelers from European airports from
entering the US. UK travel industry experts have expressed concerns about Chinese
tourists being kept at home. There were 415,000 visits from China to the UK in the 12
months to September 2019, according to Visit Britain. Chinese travelers also spend three
times more on an average visit to the UK at £1,680 each. More than 100 countries
cancelled their flight because of that which causes billion dollars of losses.
Graph 02: Impact of Coronavirus on the Airways

Schduled Seats Number

Aeroloft
322000
Delta Air
338000
Turkish Air
354000
Ryan Air
369000
Qatar Airways
372000
Wizz Air
468000
KLM
507000
Emirates
544000
Lufthansa
573000
Air France
815000
0 100000 200000 300000 400000 500000 600000 700000 800000 900000

Seats
3

Above chart shows the number of air flight seats which was cancelled due to this
pandemic. As we can see that air France is the worst sufferer till now because of that
pandemic.
Safe heaven investment also causes loss
The outbreak of COVID-19 has had a widespread impact across the commodities
markets. Safe-haven assets like gold have rallied, while some commodities with
significant exposure to China have come under pressure. Others, like palladium, have
side-lined any potential demand weakness and set new highs. When a crisis hits,
investors often choose less risky investments. Gold is traditionally considered a "safe
haven" for investment in times of uncertainty. But even the price of gold tumbled briefly
in March, as investors were fearful about a global recession. Investors seemed that if
they invest in that assets this can lead to loss of investment because of this pandemic.

3
Source: Forward keys

5|Page
Pandemic causes this safe heaven investment an unsecured investment because the
price of it decrease suddenly due to decrease in supply and shortage of labor. Impact of
Coronavirus on gold market afforested below;
Graph 03: Impact of Coronavirus on gold market

Working from home causes unemployment raise

As COVID-19 continues to spread, this seems an increasingly likely scenario. Everyone
who can work from home should work from home. In China and neighboring countries,
millions are doing so for the first time. In the United States, companies readying staff to
work remotely include Twitter, Apple, Microsoft, Amazon and JP Morgan. This week,
NASA’s Ames Research Center in California joined them and declared a mandatory
telework policy after an employee tested positive to COVID-19. NASA sites across the
country have been testing their work-from-home capabilities. In Dublin last week, Google
sent 8,000 workers home for a day to trial an extended remote-work scenario after one
employee came down with flu-like symptoms. In Australia, Clayton Utz, Cisco and
Vodafone temporarily closed offices last week as a precautionary measure. But as the
outbreak spread it will be impossible for the people to work from home who don’t know
how to use technology. 41% people of the world don’t have internet access. So they can’t
take part in that session. So the researcher think this pandemic raise the percentage of
unemployment.

8. Impact of coronavirus on the economy of Bangladesh

Bangladesh is a densely populated country with more than 167.50 million peoples. The
population is not same as the proportion. Because the land is not enough for this huge
number of people’s habitant. That’s why this pandemic is very much fearful to the peoples
of Bangladesh than any other countries. Already numbers of people infected by this

4
Source: Bloomberg

6|Page
disease with several deaths. Many elite persons think that this is the indication for them
for community transmission. If this occurs than it will damage catastrophically the
economy as well as their social side. Already two stock exchanges (DSE, CSE) shut down
to prevent community transmission of this pandemic as well as many companies,
garment’s sector etc. These causes millions of dollars’ losses from the economy. The
researcher tries to analyze the impact of corona on the economy of Bangladesh in a
detailed way.
Financial impact
Economic turmoil associated with the coronavirus pandemic has wide-ranging and severe
impacts upon financial markets, including stock, bond, and commodity (including crude
oil and gold) markets. The stock market of Bangladesh shut their trading from 24th march
for this pandemic for 10 days. The impact on the two giant stock market during last 10
days afforested below; There the researcher tries to analyze the two major index of of
DSE and CSE (Such DSEx, CSCx).
Dhaka Stock Exchange
Date DSEx Index Total trade
Mar 25, 2020 4,008.28839 26,949
Mar 24, 2020 3,976.56856 23,152
Mar 23, 2020 3,984.75152 51,546
Mar 22, 2020 3,960.17258 27,329
Mar 19, 2020 3,974.96475 6,372
Mar 18, 2020 3,603.95304 137,191
Mar 16, 2020 3,772.55866 147,028
Mar 15, 2020 3,969.31219 126,849
Mar 11, 2020 4,231.48768 137,545
Mar 10, 2020 4,156.32346 121,768

DSEX INDEX
DSEx Index

4,400.00 4,231.49 4,008.29

4,200.00 3,969.31 3,974.96 3,984.75 3,976.57
4,000.00
4,156.32
3,800.00 3,960.17
3,600.00 3,772.56
3,400.00
3,603.95
3,200.00

5
Source: DSE

7|Page
The country’s prime bourse on Monday witnessed a massive fall by 6.51%, the highest
single-day negative fall since the broad index was introduced seven years ago. It comes
in the aftermath of news related to the coronavirus cases in Bangladesh. The key index
of Dhaka Stock Exchange (DSE), DSEX, settled at 4008.05 after losing 279.32 points or
6.51% in Monday’s session. It was the lowest level of the DSEX in the 7 years since
January 2013. The index was launched on January 27, 2013 with 4,056 as base points.
The market capitalization at Dhaka bourse has dropped Tk17,291 crores in the session.
As of Monday, its market cap declined to Tk3,14,219 crores from Tk3,31,510 crores.
Panic-stricken selloffs increased turnover to slightly Tk71 crore or 16.4% and closed at
Tk. 499 crore.
Among the traded issues two gained, 352 declined and one remained unchanged
during the session at the Dhaka bourse.
Chittagong Stock Exchange
Date CSCx Index Total trade
Mar 25, 2020 6859.9 2301
Mar 24, 2020 6813.23 1644
Mar 23, 2020 6827.29 3126
Mar 22, 2020 6777.69 2703
Mar 19, 2020 6641.32 531
Mar 18, 2020 6746.43 8237
Mar 16, 2020 7017.03 7996
Mar 15, 2020 7367.87 7709
Mar 12, 2020 7661.78 6724
Mar 11, 2020 7808.86 7165

CSCX INDEX
8000 CSCx Index
7661.78
7367.87
7500
7808.86
7017.03 6859.9
6641.32 6827.29
7000 6746.43 6813.23
6777.69

6500

6000

6
Source: CSE

8|Page
On the other hand, the Chittagong Stock Exchange (CSE) also registered loss at the end
of the session. The selected index, CSCX and all Share Price Index, CASPI declined by
466.9 and 769.3 points respectively.
Labor market impact
Coronavirus has a great impact on the labor market too. As a result of this many people
is expected to lose their jobs. This will happen because of Bangladeshi labor refused to
go abroad because of this pandemic; export reduction, import cancellation, shut down of
companies, outsourcing etc. ADB (Asian Development Bank) expect that, there will be
job cuts for around 9 million people. Specifically, in the sectoral scenarios, job cuts will be
in business sector including financial sector, trade and public services by 2,01,106 people
respectively followed by agriculture (4,58,000 people), tourism (50,000 people),
construction and utilities (1.18 million people) and transport service (67,000 people).
Impact by market sectors
Here the researcher tries to analyze the impact of corona by different market sectors like
entertainment, video games, sports and games etc.
Entertainment
Cinema
Due to this pandemic various cinema’s release date suspended for indefinite days across
the world. Bangladesh is not lag behind that. All the cinemas which was ready to release
suspended for indefinite days. Some of them were delayed which cause millions of taka
losses. But the web channels of Bangladesh became popular now-a-days. Motion rock,
Dhruvo TV, Rabbithole got huge number of views now-a-days.
Sports and Games
Due to the 100 Birthday year of Bangabandhu Sheikh Mujibur Rahman Bangladesh
Sports Council declared 100 types of games that going to be happened across the year.
But because of this pandemic all the games postponed by the respective authority. Some
of the crucial games which postponed were;
 Bangladesh vs Pakistan (ODI and test series)
 BPL 2019-2020 (Football)
 DPL 2019-2020 (Cricket) etc.
The respective authority stated that this cancellation will cause a lot of money losses.
Retail sector
With the COVID-19 pandemic impacting demand, European and American buyers have
called off roughly $1.5 billion of Bangladesh clothing orders. Bangladesh Garment
Manufacturers and Exporters Association President Rubana Huq said on that up to 1,089

9|Page
clothing manufacturing facilities have seen orders become canceled. The number is still
increasing.
Restaurant sector
The 2019-20 coronavirus pandemic has impacted the restaurant business. In the
beginning of March 2020, some major cities in the Bangladesh announced that bars and
restaurants would be closed to sit-down dinners and limited to takeout orders and
delivery. Some employees were fired, and more employees lacked sick leave in the sector
compared to similar sectors.
Tourism
The pandemic has caused major events around the world to be cancelled or postponed
and public venues and institutions to be closed. Cox’sbazar and Potengga two largest
tourism site along with other site like Bandarban, Rangamati, Khagrachari in Bangladesh
had been prohibited by the government for tourist to enter. This will cause millions of taka
lost stated by the respective hotel and motel business man in those site. ADB expect that
$510 million will be lost by this pandemic in tourism industry.
Transportation
All the flight like Us-Bangla airlines, Emirates postpone their flight in Bangladesh. This will
cause $334 million of loses according to ADB. They think that transport can create
community transmission. In the next one or two months, the tourism industry of our
country will face a loss of at least BDT 100 crore, totaling airlines, hotels, tour operations,
MICE, transportation, restaurants etc.

9. Impact on coronavirus on the economy of India

Coronavirus has a great impact on the physical health of people as well as on the
economy. All the infected countries now-a-days expecting to economic recession. India
also not lagging behind the effect of this pandemic. With 1251 infection and 32 deaths
they are in a crucial stage which can create community transmission. The number is on
the rise. This causes economic activities too by reducing imports and exports etc. Sector
wise impact afforested below;
Impact on Financial market
It is difficult to predict how the stock market will move. When there is panic, investors tend
to make their decisions emotionally, rather than rationally. This is true for most global
stock markets. The average fall in each is within the 25-30 per cent range in the past few
weeks. The same is the case with the Sensex, which fell from a peak of 42,000 points
this January 17 to below 32,000 in three months. In the past two weeks, the New York
Stock Exchange halted trading on several occasions. It witnessed the largest single-day
fall during this period. A daily fall of 2,000-3,000 points in several global indices seems a
routine affair. The regulators have no clue about what to do. Here the researcher tries to

10 | P a g e
analyze the two biggest share market (BSE, NSE) of India during the month of March last
10 days.
BSE (Bombay Stock Exchange)
Date Sensex index
17-Mar-20 30579.09
18-Mar-20 28869.51
19-Mar-20 28288.23
20-Mar-20 29915.96
23-Mar-20 25981.24
24-Mar-20 26674.03
25-Mar-20 28535.78
26-Mar-20 29946.77
27-Mar-20 29815.59
30-Mar-20 28440.32

Sensex index
31000 30579.09
29915.96 29946.77 29815.59
30000
28440.32
29000
26674.03 28535.78
28000
28288.23
Indices

28869.51
27000
26000
25981.24 Sensex index
25000
24000
23000

Date
7

7
Source: BSE

11 | P a g e
 NSE (National Stock Exchange of India Ltd.)
Date Nifty 50 Index Shares Traded

17-Mar-20 8967.05 936185892

18-Mar-20 8468.8 1517275761
19-Mar-20 8263.45 926508824
20-Mar-20 8745.45 1072263600
23-Mar-20 7610.25 654151814
24-Mar-20 7801.05 739354439
25-Mar-20 8317.85 738114713
26-Mar-20 8641.45 866534643
27-Mar-20 8660.25 801923401
30-Mar-20 8281.1 593953051

Nifty 50 Index
9500
8967.05 8745.45 8660.25
9000
8641.45
8317.85 8281.1
8500
Nifty 50 Indices

8468.8
8000
8263.45
7801.05
7500 Nifty 50 Index
7610.25
7000

6500

Date

Indian shares edged lower as the number of coronavirus infections in Asia’s third-largest
economy showed no signs of slowing in spite of a nationwide lockdown. The broader NSE
Nifty 50 index fell 2.76% to 8,421.05 and the benchmark BSE index was 2.86% lower at

8
Source: NSE

12 | P a g e
28,962.47. Positive coronavirus cases rose above 1,000 (number is increasing) in India
as, government data showed while the total number of deaths touched 27 (number is
increasing). Fresh cases were reported even as the country continued to be under a 21-
day lockdown, which began on Tuesday last week. Investor jitters around the economic
impact of the virus continued despite a slew of measures by the country’s central bank
on Friday, including a 75 basis-point cut in interest rates. The Indian rupee was 0.5%
weaker against the dollar at 75.165, compared to its previous close of 74.81. Domestic
investors also eagerly watched other global markets, as major economies enforced
shutdowns to combat the transmission of the fast-spreading virus, while their central
banks stepped up efforts to cushion the economic fallout. Investors fear that the COVID-
19 outbreak could bring the economy to a grinding halt. In the domestic market, the Nifty
auto index shed 3.85% and was the biggest loser among sectors, followed by the Nifty
metals index, which fell 3.4%. Banks and financial stocks were also among the biggest
drags, with their main sub-indexes falling 2.26% and 2.96%, respectively.
Import sector
The dependence of India on China is huge. Of the top 20 products (at the two-digit of HS
Code) that India imports from the world, China accounts for a significant share in most of
them. India’s total electronic imports account for 45% of China. Around one-third of
machinery and almost two-fifths of organic chemicals that India purchases from the
world come from China. For automotive parts and fertilizers China’s share in India’s
import is more than 25%. Around 65 to 70% of active pharmaceutical ingredients and
around 90% of certain mobile phones come from China to India. Graphical presentation
shown below;

Percentage of share of total imports

40%
30%
20%
%

10%
0%
Medical and
Organic In organic
Pharma Dyes
Chemicals Chemicals
products
Percentage of share of total
37% 13% 36% 28%
imports
Products
9

Export Sector
China is India’s 3rd largest export partner and accounts for around 5% share. The impact
may result in the following sectors namely organic chemicals, plastics, fish products,

9
Source: https. // commerce.gov.in

13 | P a g e
cotton, ores, etc. The researcher analyzes that most of the Indian companies are located
in the eastern part of China. In China, about 72% of companies in India are located in
cities like Shanghai, Beijing, provinces of Guangdong, Jiangsu, and Shandong. In various
sectors, these companies work including Industrial manufacturing, manufacturing
services, IT and BPO, Logistics, Chemicals, Airlines, and tourism. It has been seen that
some sectors of India have been impacted by the outbreak of coronavirus in China
including shipping, pharmaceuticals, automobiles, mobiles, electronics, textiles, etc. Also,
a supply chain may affect some disruptions associates with industries and
markets. Overall, the impact of coronavirus in the industry is moderate.
Ficci survey showed 53% of Indian businesses have indicated a marked impact of
COVID-19 on business operations. And 42% of the respondents said that up to three
months could take for normalcy to return.
Chemical Industry
Some chemical plants have been shut down in China. So there will be restrictions on
shipments/logistics. It was found that 20% of the production has been impacted due to
the disruption in raw material supply. China is a major supplier of Indigo that is required
for denim. Business in India is likely to get affected so people securing their supplies.
However, it is an opportunity. US and EU will try and diversify their markets. Some of the
business can be diverted to India which can also be taken as an advantage.
Shipping Industry
Coronavirus outbreak has impacted the business of cargo movement service providers.
As per the sources, per day per vessel has declined by more than 75-80% in dry bulk
trade. The number of cruse are also being suspended due to this pandemic.
Auto Industry
Its impact on Indian companies will vary and depend upon the extent of the business with
China. China’s business no doubt is affected. However, current levels of the inventory
seem to be sufficient for the Indian industry. If the shutdown in China continues then it is
expected to result in an 8-10% contraction of Indian auto manufacturing in 2020.
Pharmaceuticals Industry
Despite being one of the top formulations of drug exporters in the world, the pharma
industry of India relies heavily on import as of bulk drugs. Due to the coronavirus outbreak,
it will also be impacted.
Textiles Industry
Due to coronavirus outbreak, several garments/textile factories in China have halted
operations that in turn affecting the exports of fabric, yarn and other raw materials from
India.

14 | P a g e
Solar Power Sector
Indian developers may face some shortfall of raw materials needed in solar panels/cells
and limited stocks from China.
Electronics Industry
The major supplier is China in electronics being a final product or raw material used in
the electronic industry. India’s electronic industry may face supply disruptions, production,
reduction impact on product prices due to heavy dependence on electronics component
supply directly or indirectly and local manufacturing.
IT Industry
The New Year holidays in China has been extended due to coronavirus outbreak that
adversely impacted the revenue and growth of Indian IT companies.
Tourism and Aviation
Due to the coronavirus outbreak, the inflow of tourists from China and from other East
Asian regions to India will lose that will impact the tourism sector and revenue.
Entertainment sector
This sector is severely affected by Covid-19. All the Bollywood movies, Tollywood movies
suspended their release because of it. They already invested a lot of money into it. Now
they are in jeopardy about the investment. But the web channels now-a-days do well.
Such Netflix, Amazon, Hoichoi, Zee 5 etc doing so well as more people started to watch
their channels with a lot subscription.
Sports and games are also severely affected by this pandemic. Many international events
suspended their activities because of this pandemic including India- South Africa ODI
series, IPL etc.
So, In India the impact may felt through supply chain disruptions from China and also as
regional players, who imports from China.

10. Impact of Coronavirus on the economy of China

The recent outbreak of COVID-19 in China has led to significant impacts on businesses
and industries. As China tries to balance imperatives between disease control, economic
recovery and population movement, annual GDP growth is expected to slow down to
between 5 and 5.5% for 2020. But the condition of coronavirus is in a good position now
in China. They had taken some crucial step to minimize the effect of this pandemic. That’s
why they deserve a huge clap. The researcher tries to analyze here the sector wise impact
of corona virus on the economy of China;

15 | P a g e
Impact on the Financial Market
Composite data was reported at 2,750.300 in Mar 2020. This records a decrease from
the previous number of 2,880.300 for Feb 2020. This occurs because of the running
pandemic named coronavirus which make this biggest economy standstill. The data
reached an all-time high of 5,954.770 in Oct 2007 and a record low of in Apr 1991. The
index of SSE Composite afforested below during last 3 months.
Shanghai Stock Exchange
Date SSE Composite
Dec-19 3050.120
Jan-20 2976.530
Feb-20 2880.300
Mar-20 2750.300

SSE COMPOSITE
3100

3000
INDICES

2900

2800

2700

2600
DEC-19 JAN-20 FEB-20 MAR-20
Dec-19 Jan-20 Feb-20 Mar-20
SSE Composite 3050.12 2976.53 2880.3 2750.3

DATE

10

Labor Market Impact

Because of this pandemic approx. 5 million people in China lost their jobs in the first two
months of this year. China’s official predict that, urban unemployment rate jumped in
February to 6.2%, its highest on record, the National Bureau of Statistics assume that, it’s
up from 5.3% in January and 5.2% in December. The researcher analyze that the work
rate is about 60% for small and medium-sized enterprises, and significantly higher for
larger companies. However, analysts have pointed out that reopening a business typically
does not mean it is operating at the same capacity as it normally would. Dan Wang of the

10
Source: SSE

16 | P a g e
Economist Intelligence Unit expects that 9 million people in China’s cities will lose their
jobs this year as a result of the virus’ impact.
Export and Import sector crashes
China’s exports and imports both plunged over the first two months of the year, as the
coronavirus tore through the world’s second-largest economy. Exports fell by 17.2 per
cent in January and February combined compared to the same period a year earlier. This
was down from 7.9 per cent growth in December. Imports dropped 4 per cent from a year
earlier, down from 16.5 per cent growth in December. According to Bloomberg exports
would fall by 15.2 per cent and imports by 16.6 per cent, respectively. In total, China’s
foreign trade was US$591.99 billion over the two months, down 11 per cent on last year.
The lowest monthly trade figures in China’s history were minus 22.2 per cent for exports
in August 2009 and minus 43.1 per cent for imports in January 2009, as the world
struggled to escape the global financial crisis.
Impact on industrial production
In China, where the coronavirus first appeared, industrial production, sales and
investment all fell in the first two months of the year, compared with the same period in
2019. China makes up a third of manufacturing globally, and is the world's largest exporter
of goods. Restrictions have affected the supply chains of big companies such as industrial
equipment manufacturer JCB and carmaker Nissan. Shops and car dealerships have all
reported a fall in demand. Chinese car sales, for example, dropped by 86% in February.
More carmakers, like Tesla or Geely, are now selling cars online as customers stay away
from showrooms.
Impact on electronic items
All large manufacturers including LG, Voltas, Samsung, Haier and Panasonic have
decided on a 3-5% price increase across models. This means the price will be increased
by the exporter due to huge buying price of raw materials. Component prices have gone
up due to lower production in China and the cost of shipment too is up. The budget had
also increased duties on some components by 2.5%. The consumer electronics industry
is heavily dependent on China for component supplies. All key parts such as compressors
for ACs and refrigerators, washing machine motors and plastic parts are imported from
China. Around 70-75% of materials based on value are imported.
Impact on Transportation
Chinese officials had taken an unprecedented step of creating a quarantine around the
city of Wuhan, shutting down its public transportation and restricting travel. Shortly
thereafter, U.S. air carriers stopped most flights to and from China. From a transportation
perspective, travel in the Wuhan region had all but stopped except for limited trips. In
Shanghai and Beijing, which are not subject to quarantine, ridership on their metro
systems are down 85 percent and 91 percent, respectively. Intercity rail trips have
dropped more than 80 percent. Domestic airlines cut 13,000 daily flights within the country

17 | P a g e
and some desperate ones are offering $4 fares. Justified or not, shared modes of
transportation appear to be the most affected. But still only around 30 percent of people
are going to work, affecting all transportation modes. These trends are extending beyond
China. Stocks of cruise ship lines, airlines, and other shared transportation services like
Uber and Lyft have declined. On the other hand, the Wuhan quarantine had been a boon
to Chinese home delivery services.
Impact on Technology
The tech sector is currently feeling the impact of the coronavirus, with companies were
closing offices, stores, and factories in China as well as restricting employees from
nonessential travels to the country. Multitudes of short- and long-term effects were
anticipated, from postponed events to companies potentially missing a holiday launch
target due to the nationwide office closures. Few months ago, major tech companies
announced they would temporarily shut down all corporate offices, manufacturing
factories, and retail stores across China. These companies include Apple, Samsung,
Microsoft, Tesla, and Google. As many products are manufactured in China (or use parts
from Chinese vendors), experts are also warning customers to expect shortages for
various smartphones, VR headsets, cars, and other tech accessories. The Foxconn and
Pegatron closures in China, for example, are expected to potentially delay iPhones and
AirPods production as factory workers are unable to resume work.

11. Long term effects of the corona on the economy of Bangladesh,

India and China
 The possible long term effects of coronavirus are the creation of revolution namely
“work from home”. If coronavirus stays for long these countries people engaged in
working from home which increase the unemployment rate in those countries.
 This pandemic also causes climate change. Now we can see the example of
climate change. Due to this pandemic environment getting clean and safe to
breathe. Traffic jam, Pollution all changed due to this pandemic in those countries.
 Bangladesh will lose about 1.1 percent of its GDP in the worst-case scenario if the
outbreak lasts six months. This means that $3.02 billion from Bangladesh’s
economy may be lost. India lose about 1% of its GDP and China lose about 1.09%
of its GDP.
 Coronavirus have a great impact on the export and import sector. Bangladesh will
lose a billion dollar if this pandemic continues in the garments sector; same in case
of India they import and export several products from china so this postponed
because of this pandemic. This causes loss for both countries India and China.

18 | P a g e
 12. Impact of Coronavirus on the economic performance of
Bangladesh, India and China in 2020
Country Name Forecasted GDP Forecasted Forecasted
(% terms) Inflation rate (% Unemployment
terms) rate (% terms)
Bangladesh 7.50 (-.4) 5.5 (.04) 4.40 (.20)
India 4.7 (-.4) 4.1 (.7) 8.2 (.85)
China 6 (-.8) 2.51 (.22) 3.8

Here the researcher tries to analyze the economic performance of these 3 countries with
their respective forecasted GDP, Inflation rate and unemployment rate. Bangladesh’s
GDP is reduced to 7.5% with .4% of reduction but their inflation rate is increasing year by
year and in 2020 it will be 5.5% with .4% of increment. Their unemployment rate is also
on increasing trend with .2% of increment. India not lagging behind of the disruption of
the economy. They also face reduction in GDP, Increment in Inflation Rate and
Unemployment rate. China is also catching the same pace. They also face reduction in
GDP and Increment in Inflation Rate. This increase in inflation rate make the price of the
goods increase and make the economy worse. Demand and supply shortened. But before
that the economy of this 3 countries may face several major loses. also This happened
because of the running pandemic namely coronavirus which make biggest economies
standstill.

13. Recommendations on restructuring economies

Various economist suggest that the recession is knocking at the door due to this
pandemic. The researcher also thinks that, by looking at several factor like travel sector
failure, hotel sector failure, factories shut down, Customers tendency to buy less due to
the current epidemic named coronavirus. This affects the total GDP of a certain country.
The researcher here tries to recommend some steps by which the economies can
restructure and may avoid recession. Let’s talk about Bangladesh first.
Few weeks ago, people of Bangladesh were living peacefully, travelling freely, doing their
jobs perfectly; the economic growth projections were cheery and the financial market
were tolerable. But the novel coronavirus or Covid-19 has brought a dramatic slowdown
in the overall life style and economy of the world where Bangladesh became a victim too.
Strategical measures can win over any situation. So in order to minimize the effect of this
pandemic on the economy Bangladeshi government should take some effective steps
which must be for short and long term purposes. Those are;
 Bangladesh government and the central bank must make sure the cloud based
work from home to make the economy run.
 They required monetary, fiscal and health policy responses.

19 | P a g e
  Huge investment on health sector is required to improve the health condition of its
people.
 Supporting vulnerable households and firms is essential as containment measures
and the fear of infection can cause sudden stops in economic activity.
 The liquidity crisis of several companies should be minimized by the government
by ensuring long term lower interest rate loan to them.
 The people of Bangladesh should deposit some money in their house or in a
financial institution which they can use if recession arise. That’s why they need to
cut their spending as far as possible they can.
 They need to look for an alternative job in advance if they lose their current job due
to this pandemic.
 The peoples should invest in Bond, Share, Savings certificate for long term. Also
they should avoid investing in share market for short term. Because it can cause
loses and tension.
 Finally, the government, oppositions, the NGOs, the other social organizations, the
business people, the financial and non-financial institutions, and the people of
Bangladesh should come forward and work together to handle this pandemic and
minimize both the economic and non-economic losses.
Now moving forward to India. Due to this pandemic, India's GDP could fall below 5% in
FY 2021 if policy action is not taken urgently. It is said that the government should take
some strong fiscal stimulus to the extent of 1% of GDP to the poor, which would help
them financially and also manage consumer demand.
 The government should provide small scale loan to the businessman who are
severely affected by this pandemic and also compensated the small and medium
enterprises.
 Unemployment is always a huge problem for them. This pandemic causes it to
increase more. So they can minimize it by ensuring work from home, creating new
sector by using new technology etc.
 Cutting back interest rate which is essential for the business to take loan and make
them stable.
 Encourage financial institutions to help productive sectors by providing loan,
consulting services etc.
 Investing in health sector as far they can to improve the health condition of its
people.
 Bringing down the cost of capital and minimize liquidity crisis.
 Invest in research more to discover more technologies which they can import in
other countries and make the economy stable again. As they are rich in tech sector.
 Need to improve the condition of tourism sector as it can be the most important
sector for them to restructure their economy. It is assumed that they will face a
tremendous pressure on that sector if the present condition stabilizes.

20 | P a g e
China already started to stabilize their economy as they cured from this pandemic. So it
will be better for other country to look forward what they will do to restructure their
economy.

14. Conclusion
The coronavirus is going global, and it could bring the world economy to a standstill. It is
started in December 2019 in Hubei, China and started spreading like a tracer bullet. After
that it is not only effected the human life but also the economy of the globe. The
researcher here tries to analyze the economic impact of coronavirus of Bangladesh, India
and China. These three developing countries severely affected by this pandemic from
economic and human life point of view. This pandemic rises unemployment rate, inflation
rate, causes severely tourism sector, transportation sector of this three countries. These
issues here analyzed by the researcher.

15. References
I. Lora Jones, David Brown & Daniele Palumbo (2020), Coronavirus: A visual guide
to the economic impact, https://www.bbc.com/news/business-51706225
(accessed march 10)
II. THE COVID-19 CORONAVIRUS AND ITS ECONOMIC IMPACT,
https://www.capitaleconomics.com/the-economic-effects-of-the-coronavirus/
(accessed march 10)
III. Lee allen (2020), “Bangladesh import scrap prices drop sharply”
https://www.amm.com/Article/3925111/Bangladesh-import-scrap-prices-drop-
sharply.html (accessed march 11)
IV. Libby Sander (2020), Coronavirus could spark a revolution in working from home.
Are we ready? https://theconversation.com/coronavirus-could-spark-a-revolution-
in-working-from-home-are-we-ready-133070 (accessed march 11)
V. Dr Hasanul Banna (2020), Minimizing the economic impact of Coronavirus in
Bangladesh, https://tbsnews.net/thoughts/minimising-economic-impact-
coronavirus-bangladesh-56449 (accessed march 11)
VI. Yagnesh Kansara (2020), Down, Down, Down! Why Coronavirus Will Lockdown
Indian Stock Market Indefinitely,
https://www.outlookindia.com/magazine/story/business-news-down-down-down-
why-coronavirus-will-lockdown-indian-stock-market-indefinitely/302995
(accessed march 13)
VII. Chinese economy suffers record blow from coronavirus,
https://www.ft.com/content/318ae26c-6733-11ea-800d-da70cff6e4d3 (accessed
march 13)
VIII. Finbarr Bermingham (2020), Coronavirus: China’s exports and imports plummet in
January and February, https://www.scmp.com/economy/china-

21 | P a g e
 economy/article/3074060/coronavirus-chinas-exports-and-imports-plummeted-
january-and (accessed march 14)
IX. ILA PATNAIK(2020), India doesn’t have too many options to deal with economic
impact of coronavirus, https://theprint.in/ilanomics/india-doesnt-have-too-many-
options-to-deal-with-economic-impact-of-coronavirus/380083/ (accessed march
15)
X. Sanghai Stock Exchange, http://english.sse.com.cn/ (accessed march 18)
XI. Bombay Stock Exchange, https://www.bseindia.com/index.html (accessed march
18)
XII. National Stock Exchange of India, https://www.nseindia.com/ (accessed march 18)
XIII. Dhaka Stock Exchange, https://www.dsebd.org/ (accessed march 20)
XIV. Chittagong Stock Exchange, https://www.cse.com.bd/ (accessed march 20)

22 | P a g e