The South Asian Network on Economic Modeling (SANEM) has presented an analysis of how Bangladesh’s economy could be affected if oil and LNG prices rise due to the Middle East war.
SANEM estimates that GDP growth, imports and exports could decline, while at the same time, inflation could rise, reducing people’s real incomes.
Additionally, apparel production and agricultural production may decline.
These comments were made in a press release sent by SANEM on Thursday afternoon.
To assess how a prolonged conflict in the Middle East could affect Bangladesh’s economy, SANEM used the Computable General Equilibrium (CGE) model of the Global Trade Analysis Project and outlined several possible scenarios.