The significant economic boost which the country witness over the recent years has been commendable, to say the least. The incumbent government’s holistic approach is leading us to great economic achievements. In that continuity, the International Monetary Fund (IMF) has projected 6.6 percent GDP growth for Bangladesh in FY22.
Despite being hit by multiple waves of the Covid-19 pandemic, quick and decisive actions by the authorities, supported by the external environment, led to a much quicker rebound than Bangladesh's regional peers. With the projected pick up in the imports of capital goods, industrial raw materials, and commodities, the current account deficit is expected to widen in FY22. Public debt will remain sustainable over the long term. As the external environment improves and the domestic vaccination program progresses, growth is projected to increase to 7.1 per cent in FY23.
If the remaining economic complexities
are removed it will bolster the already
augmented GDP growth
The uncertainty around the outlook remains high and risks are tilted to the downside. Increasing revenue and enhancing fiscal policy frameworks are necessary to scale up inclusive and productivity-enhancing investments while safeguarding fiscal sustainability. Modernizing revenue administration, streamlining tax expenditure, separating National Savings Certificates (NSC) from direct budget financing, and adopting a fuel pricing mechanism will help accommodate additional social and climate-related spending.
Government now needs to take constant policies to continue the positive macroeconomic trend. More foreign direct investments should be attracted and exports should be maximised so that we can maintain a trade surplus. To attract more foreign investments in our resilient garment sector, government can target the companies which are recently shifting away from China, and if we can get part of it and attract some of those companies, that would be a good opening to bring and diversify the economy too. For a sustainable economic growth, government should consider to make economic reforms in the fundamental sense. If the remaining economic complexities are removed it will bolster the already augmented GDP growth.
