Inflation’s obduracy reflects the inadequacies of the policy response
The spike in inflation from 9.41 percent in December to 9.86 percent in January was driven entirely by the rise in non-food inflation.
Labour market in a low gear
Bangladesh has delivered decent economic growth relative to the rest of the globe braving the coronavirus pandemic, supply chain disruptions, successive wars and macroeconomic stress. However, labour market recovery since the pandemic has been anemic. There are lingering concerns about growth lacking the shine of good jobs.
Short on actions
Even though the challenges are pointed out in the MPS, they fall short of measures to yield visible results
Making the economy breathe easier
The Bangladesh economy has entered 2024 with acute cost-of-living pressures, external payment imbalances, shortage of dollar liquidity, elevated illicit capital outflows, and vulnerable balance sheets in several, not all, bank and non-bank financial institutions.
Time ripe to own up to weaknesses
The Bangladesh economy faced extended economic distress after recovering partially from the pandemic before facing the cost-of-living increases and external payment imbalances. Economic activity slowed in 2023 with persistently high inflation and erosion of external buffers.
FY23 fiscal policy shies away from prioritising macroeconomic stability
Says economist Zahid Hussain in an interview
A poverty, inequality, and growth puzzle
The poverty trend emerging from valid comparisons with the previous rounds of HIES may or may not be different.
No policy measure taken to contain high inflation
There has also been very little policy response to help out families at the bottom of the income ladder
June 30, 2022
Foggy stance of Bangladesh Bank on exchange rate
A key objective of issuing a monetary policy statement on the eve of the new fiscal year is to provide forward guidance to the public about the likely future course of monetary policy. When credible, individuals and businesses use this information in making decisions about spending and investments.
June 20, 2022
Real wage decline could push low-income families into poverty
Nominal wage growth at the low skill level overall has fallen behind the headline inflation.
May 15, 2022
Pressure on foreign exchange market likely to continue
The current inflationary pressures are attributable largely to the rise in international commodity prices and the exchange rate depreciation, albeit to a relatively smaller extent. The latest data from the Bangladesh Bureau of Statistics show there was a spike in domestic consumption demand as well.
May 11, 2022
Prosperity without clarity
The growth estimate for fiscal 2021-22 appears directionally consistent with the high-frequency growth indicators such as exports, imports, private credit and revenue collections.
May 1, 2022
Tribute to Muhith: Epitome of optimism
Over the last 50 years of Bangladesh’s existence, we have seen many finance ministers. AMA Muhith was among those few who this nation will remember for making the job appear joyful and free from the pains of balancing difficult trade-offs amid resource constraints.
March 22, 2022
Inflation: more to come
Inflation is rising in Bangladesh as it is in several advanced and emerging economies. Increased headline inflation in February was driven by a spike in food inflation. The 12-month moving average inflation has been on an upward trend since the November 2019 to October 2020 period.
March 3, 2022
No one immune from the impact of Russia-Ukraine conflict
The economic damage from supply disruptions triggered by the confluence of events around the Russian invasion of Ukraine would be severe in some countries and industries and less so in others depending on the depth and breadth of economic ties,
February 9, 2022
Spike in GDP growth: hard to fathom
There was no doubt that the growth in gross domestic product (GDP) in FY21 was better than the growth in FY20 even though the pandemic was present with all its ferocity in both years.
January 9, 2022
No growth in real wages
The Bangladesh Bureau of Statistics (BBS) data provides a somewhat mixed picture on how labour is benefitting from the ongoing economic recovery in Bangladesh.
December 27, 2021
Rising inflation creates a trilemma
Consumer price growth has spiked, driven by non-food inflation which is approaching 7 per cent. Inflation in Bangladesh is catching up with global trends. As in the case of the rest of the world, cost-push has been the most important driver which in turn came from increases in energy prices.
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