Economy showing signs of recovery: MCCI
Despite some challenges, the economy has been showing some signs of recovery in the fourth quarter of 2021, according to a quarterly analysis of the Metropolitan Chamber of Commerce and Industry (MCCI) today.
The stimulus packages comfort the business groups, from large farms to petty micro-enterprises, which eventually helped the economy to boost again.
Exports and remittances are two important drivers of the economy, and amid the Covid-19 pandemic, both areas have done well.
Robust remittances and export earnings had facilitated Bangladesh's economic recovery in the just-concluded fiscal year (FY21).
Year-on-year, exports in FY21 grew by 15.10 per cent and the remittances grew by 36.11 per cent, the MCCI said in its Review of Economic Situation in Bangladesh April -June of the FY 2020-21.
The inward remittances have a huge positive impact on the rural economy to sustain the domestic consumption demand, which has multiplier effects on other economic sectors, especially the small and medium industries.
The rate of inflation is under control and the foreign currency reserve is in a satisfactory position. The exchange rate has long been remained stable while the balances of payments are also in a positive trajectory, MCCI also said.
Bangladesh, like many other countries of the world, struggled with the number of infections and the new normal of COVID-19 measures such as social distancing, wearing masks, virtual meetings, online classes etc.
Since reporting its first case on 8 March 2020. As a result, people across all socioeconomic backgrounds have been adversely affected including ours.
The consequences of the COVID-19 pandemic and multiple lockdowns since March 2020 have slightly pushed Bangladesh off its growth trajectory.
However, the recovery period is uncertain, but much depends on vaccination and the strength of the global economy. The non-availability of mass vaccination may appear to be one of the critical factors for slower economic recovery.
On the other side, some of the economic indicators appear to be less promising than projected earlier.
The fiscal framework continues to be weak because of poor achievements, more specifically, both in terms of revenue mobilization and public expenditure.
The unemployment situation and low investment is also a challenge. A significant increase in public and private investment is necessary to maintain competitiveness and generate further growth.
The policymakers need to focus on strategies for post-Covid recovery and concentrate on policies to upgrade various private sectors so that more successful revenue-earning streams can be generated and attract reinvestments from existing investors.
All these may cushion losses incurred during this pandemic period, the chamber also said.