Home ›› 29 May 2023 ›› Front
The Metropolitan Chamber of Commerce and Industry (MCCI) on Sunday recommended the government to focus on stabilising the foreign exchange reserves, managing inflation, and 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 of electricity and gas for keeping the wheels of economy turning, and extending social safety net programmes, said a press release.
Bangladesh’s economy, which is among the fastest-growing in the Asia-Pacific region, faced some challenges in the Q3 of FY23. The price hike 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 were the main challenges. Unemployment situation and low investment were 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.
MCCI projections for Q4
The Bangladesh economy is gradually overcoming the difficulty caused by the Covid pandemic and the Russia-Ukraine war. Exports may decrease in April 2023 due to lower growth of apparel export; however, it may increase in the next three months.
The export figure was $4,644m in March which may decrease to $3,960m in April, but the figure will increase to $4,490m in May and $4,760 in June.
Import may increase slowly during Q4 of FY23. The import figure was $5,190m in March, and it may rise to $5,220m in April, $5,280m in May, and $5,375m in June.
Besides, remittances may decrease in April to $1,683m from $2,018m in March, and it may increase to $2,080m in May, and $2,125 in June.
And, the foreign exchange reserve is likely to fall in April of FY23 due to the payment to the Asian Clearing Union (ACU) against imports.
The forex reserve was $31168 in March which may decrease to $30930m in April. Later, it may rise to $32965m in May, and $33125m in June.
Inflation, however, can be expected to go down slightly in Q4 of FY23. The figure was 9.33 per cent in March, but it will be 9.24 per cent in April, 9.05 per cent in May, and 8.90 per cent in June.
