The Metropolitan Chamber of Commerce and Industry (MCCI) on Sunday recommended the government to focus on stabilising the foreign exchange reserves, managing inflation, enhancing revenue inflow.
MCCI, in its third quarter (January – March 2023) review on economic situation in Bangladesh, also emphasised the need for ensuring proper supply electricity and gas for keeping the wheels of economy turning, and extending social safety net programmes, read a press release.
Bangladesh's economy, which is among the fastest-growing in the Asia-Pacific region, faces some challenges in the Q3 of FY23. Robust economic recovery from the pandemic has been interrupted by the war in Russia-Ukraine.
The recent price rise of essential commodities, weak remittance inflow, shortfall in revenue collection, 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 situation and low investment are other challenges. A significant increase in public and private investment is necessary to maintain competitiveness and generate further growth, the MCCI pointed out.
The chamber added that nevertheless, the economy has been showing some signs of improvement in the quarter under the review.
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 release read.
