Business Desk :
Despite the recovery trend in Bangladesh’s economy following a gradual reduction in coronavirus incidence, its fiscal framework continues to be weak in view of poor achievements in revenue mobilisation and public expenditure, according to a recent report by the Metropolitan Chamber of Commerce and Industry (MCCI).
The review report, titled ‘Review of Economic Situation in Bangladesh’, compiled Q1 of the fiscal year 2021-22 (July – September) data of all major economic indicators in Bangladesh.
The review also pointed out emerging challenges for the country and provided recommendations to overcome them.
The country’s economy faces emerging challenges due to the recent price rise of essential commodities, decreasing remittances, any new Covid wave, and slow vaccine rollout, the report said.
Nevertheless, the economy has been showing some signs of recovery in Q1 of FY22, which needs a significant increase in public and private investment to maintain competitiveness and generate further growth.
Among the major economic indicators reviewed in the report, industry, service, revenue, public finance, export, foreign aid, foreign direct investment, and foreign exchange reserves grew in this period compared to the corresponding months of the previous year.
On the other hand, growth in agriculture, capital market, remittance and Balance of Payment (BOP) shrank during this period.
Bangladesh, like many other countries of the world, was struggling with the number of infections and a fear of new Covid-19 wave during the quarter under review, the report said.
The stimulus packages comfort the business groups, from large farms to petty micro-enterprises, which eventually helped the economy to boost again.
Exports and imports are two important drivers of the economy, and amid the Covid-19 pandemic, both areas have done well. Robust export earnings have facilitated economic recovery in recent times. The rate of inflation is also increased in the quarter under review.
