High unemployment in America will result in lower income of Americans, less demand for garments, and our industry will suffer.

Saifur Rahman, Bangladesh Finance Minister

The finance minister told the BBC's World Business Report that there are already signs that these forecasts are becoming a reality.

"We have already seen the remittances (money sent home from people living abroad) declining, export earnings are declining," he said.

The new government is now faced with "this unhealthy environment for international trade and investment," he added.

Demand for exports

Almost 40% of Bangladesh's total income from exports comes from the US.

Mr Rahman claims sales of the country's principle export to the United States, ready-made garments, are likely to suffer in particular.

"High unemployment in America will result in lower income of Americans, less demand for garments, and our industry will suffer," he said.

"The effects will not remain confined to America. It will also effect the European economy and the cumulative effect of such features will create a quite difficult problem for us," he added.