Disasters and Development Disruption: Synthesizing the Economic Impacts and Mitigation Strategies for Bangladesh

Abstract

Natural catastrophes increasingly threaten economic stability, particularly in emerging nations characterized by vulnerable infrastructure and inadequate adaptive capability. Bangladesh, being a disaster-prone nation, is consistently subjected to shocks that negatively impact its economic development. These occurrences have immediate consequences, including infrastructure damage, agricultural devastation, and income disruptions, as well as indirect effects that influence long-term GDP, employment, and investment reductions. Comprehending these mechanisms is crucial for developing effective policy strategies. This study adopts a qualitative, narrative literature review methodology by integrating peerreviewed journals and policy reports to examine the economic impacts of natural disasters in Bangladesh and similar regions. The review indicates key economic variables influenced by catastrophe vulnerability, including productivity, trade, sectoral output, and household earnings. It emphasizes how government quality, financial market maturity, and societal vulnerability influence the intensity of these consequences. Evidence indicates that sustained economic recovery is especially difficult in agriculturally dependent and institutionally weak areas. The present article enhances catastrophe economics by providing a thematically structured synthesis of economic vulnerabilities and mitigation strategies. It offers practical policy implications for boosting economic resilience by investing in infrastructure, early warning systems, and inclusive financing strategies designed for high-risk countries.