Most economic indicators show that Bangladesh is in a better position than other foreign countries, and it is heading towards an economic rebound following the government’s time befitting measures amid the Covid-19 crisis.
The country's major economic indicators have already turned around to show the recovery of the economic losses incurred during the pandemic.
Even some major economic indicators including foreign exchange reserve and remittance inflow have hit a record high during the pandemic period.
After the 66-day shutdown announced to contain the spread of coronavirus, all small, medium and big businesses have already resumed their activities to recoup their huge losses and the efforts have begun to revive the stalled economy.
Experts said the government has undertaken time-befitting steps to reopen all government, private offices and other activities while fighting the Covid-19 in the country.
The overall economy has started to rebound, bringing smiles to the faces of businessmen, they added.
Financial activities have begun reactivating gradually with the support of the Prime Minister’s stimulus package of Tk 1,03,000crore to tide over the possible economic fallout, they mentioned.
Former Bangladesh Bank Governor Dr Atiur Rahman said, “The government has implemented the incentive package of Tk1,03,000 crore given to the affected sectors immediately to overcome the present situation.”
“The confidence in business has started mounting and the main reason behind this is the supply of cash from the central bank to the market in various forms,” he added.
Fifty percent of the stimulus packages are refinancing schemes while the central bank is providing cash to the commercial banks at bank rate. As a result, the liquidity situation in the banks is good, he mentioned.
In such a situation, the businessmen have perceived that they will get money if they want and this is also strengthening the confidence of the businessmen, he added.
Out of the Taka 30,000 crore stimulus packages for the large industries and business firms, around 55 percent has already been disbursed, he said.
The former central bank governor said the demand for exports is increasing while the foreigners have also reopened their business centers complying with the new normal life.
He said the export of RMG is also increasing ahead of the Christmas.
Dr Atiur said the rise in the inward remittance has also increased the confidence in business while it has also boosted liquidity in the economy which ultimately helps businessmen to get loans from banks as per their demand.
Former lead economist of the World Bank Dr Zahid Hussain told Bangladesh Post, “The economy is slowly turning around as the Covid-19 has gradually reduced across the world over several months.
“Many countries have now opened their borders,” he said adding that now a normal situation has gradually been created.
People including day labourers have returned to work, which is creating a normal situation for the country, he mentioned.
He said, “Bangladesh needs to remove policy complexity and infrastructure crisis to attract foreign investment.”
The country is missing huge opportunities for FDI, he mentioned.
Executive Chairman of Bangladesh Economic Zones Authority, Paban Chowdhury said many investors from China, Japan and European countries are keen to invest in the economic zones which proves that Bangladesh has become a lucrative place for foreign investors.
He said, “We have been preparing our new economic zones and investors are waiting to invest. The foreign investment will increase to a great extent once we prepare these zones.”
Meantime, increased financial and business activities during Eid-ul-Azha provided huge cash flow, gearing up the businessmen, traders and even footpath hawkers.
As people’s movement since Eid holiday continued showing an upward trend, a huge amount of cash money is also being transacted in the transport sector.
Besides, the record foreign currency reserves and inflow of remittances have also rejuvenated the country’s financial sector.
The country's foreign exchange reserves crossed the $38 billion mark for the first time on Tuesday amid a surge in remittance inflow coupled with lower import payments.
The forex reserves stood $38.15 billion on the day after hitting the $37 billion mark on July 27 this year.
In March 2020, the reserves were only $32.38 billion.
Expatriates sent a record remittance of $2.60 billion from different foreign countries in July.
This is the highest monthly remittance received in the country’s history helping to push up the foreign currency reserves.
In March 2020, the remittance inflow was only $1.27 billion.
Apart from these, the country’s export earning growth rate has also shown a positive trend after breaking a long time negative growth bringing smiles to the business community.
Country’s export earnings have started turning around with the overall export earnings increasing by almost 44 percent to stand at $3.91 billion in July from that of the previous month.
The figure was $2.73 billion in March and only $0.52 billion in April respectively.
Capital market has turned around as local and foreign investors remained active amid high hopes following the government measures to restore the ailing market to a healthy state.
DSEX, the key index of the Dhaka Stock Exchange, went up by 660 points to close at 4,060.44 on Tuesday after the reopening of the market on May 31.
Market capitalisation of the DSE rose to almost Tk 3,557 billion on the day, fromTk 3,161 billion on 31 May.
On the other hand, there is no food crisis now in the country as adequate food grains remain in government godowns or warehouses and the houses of farmers.
Country also witnessed a bumper yield of Aman crops in the season, expecting that there would also be a bumper production of Boro paddy in the ongoing season.
Besides, special measures have been taken to maintain the supply and distribution of foods and agricultural products.
