Bangladesh economy one of fastest-growing in Asia-Pacific region

Published : 28 May 2023 09:00 PM

Mentioning that the Bangladesh economy is one of the fastest-growing ones in the Asia-Pacific region, the metropolitan Chamber of Commerce and Industries (MCCI) in its routine review sees that the economy is currently facing some challenges.

The MCCI made the observations in its quarterly economic review, released on Sunday.

“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”, the review says. 

Unemployment situation 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), it says.  

Mentioning that the 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, review observe that the 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. 

MCCI recommends the government 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.