Bangladesh economy shows signs of improvement: MCCI

Metropolitan Chamber of Commerce and Industry (MCCI) has observed that Bangladesh’s economy has been showing some signs of improvement.

In a report titled ‘Review of Economic Situation in Bangladesh October – December 2022 (Q4 of FY23)’, MCCI today mentioned that Bangladesh’s robust economic recovery from the COVID-19 pandemic has been interrupted by the war in Russia-Ukraine, resultant supply-chain disruptions, global oil-and food-price spikes, slowdown in external demand, weak remittance inflow, shortfall in revenue collection and slow public expenditure, rise in inflation, widening of current account deficit, depreciation of the Taka and a decline in foreign exchange reserves. Unemployment situation and low investment are other challenges.

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

Nevertheless, the economy has been showing some signs of improvement in the quarter under review (Q4 of FY23). Exports and imports are two important drivers of the economy, and amid the present situation, 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. (BSS)