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Although Bangladesh was initially spared the worst consequences of the global financial crisis, the lagged impacts have started to become visible, transmitted by means of various channels. Overall, export earnings have remained robust, driven by readymade garment exports, but volatility has increased. In the third quarter of 2009, there was a significant fall in exports, with apparel exports also falling victim to sluggish demand. At the same time, policies pursued by competitors have had an adverse impact on Bangladesh’s competitive strength in the global market.