Friday, 29 September, 2023

Bangladesh economy gradually overcoming difficulty: MCCI

The Metropolitan Chamber of Commerce and Industry (MCCI) has observed that the Bangladesh economy is gradually overcoming the difficulty caused by the COVID-19 pandemic and the Russia-Ukraine war.

In a report titled 'Review of Economic Situation in Bangladesh January - March 2023 (Q3 of FY23)', MCCI mentioned that Bangladesh's economy, among the fastest-growing in the Asia-Pacific region, faces some challenges, reports BSS.

Robust economic recovery from the pandemic has been interrupted by the war in Russia-Ukraine, recent price rise of essential commodities, weak remittance inflow, shortfall in revenue collection and slow public expenditure, widening of Bangladesh's current account deficit, depreciation of the Taka and a decline in foreign exchange reserves are the main challenges.

Unemployment and low investment are other challenges. A significant increase in public and private investment is necessary to maintain competitiveness and generate further growth.

Nevertheless, the economy has been showing some signs of improvement in the quarter under review (Q3 of FY23). Exports and imports are two important drivers of the economy, and amid the COVID-19 pandemic and the war in Russia-Ukraine, both the areas have done comparatively well.

Foreign currency reserve is still somewhat in a satisfactory position but into a weaker trajectory. The exchange rate has long been remained stable but depreciated notably in recent months.

To overcome the pressure, the government took some quick and decisive measures addressing the economic fallout. The government also needs to take more actions to stable foreign exchange reserves, manage inflation, enhance revenue earnings, ensure proper electricity and gas supply for economic activities, and extend social safety net programs.