Signs of improvement in Bangladesh economy in Q4 FY23: MCCI

Exports and imports did relatively well during the quarter. Foreign currency reserve was still somewhat in a satisfactory position, but into a weaker trajectory.

Bangladesh's robust economic recovery from the COVID-19 pandemic was interrupted by the Russia-Ukraine conflict, resultant supply-chain disruptions, global oil-and food-price spikes, slowdown in external demand, weak remittance inflow, shortfall in revenue collection and slow public expenditure, rise in inflation, widening of current account deficit, depreciation of the Taka and a decline in foreign exchange reserves, an MCCI report said.

Unemployment and low investment are other challenges, the report, titled 'Review of Economic Situation in Bangladesh October-December 2022 (Q4 of FY23)', said.

Though the government took quick and decisive measures to address the economic fallout and overcome the challenges, it also needs to take more actions to stabilise foreign exchange reserve, manage inflation, enhance revenue earnings, ensure proper electricity and gas supply for economic activities, and extend social safety net programmes, Bangladesh media outlets reported.

ALCHEMPro News Desk (DS)