Bangladesh economy shows signs of improvement: MCCI

The Metropolitan Chamber of Commerce and Industry (MCCI) has observed that Bangladesh's economy has been showing some signs of improvement.

MCCI revealed a report titled 'Review of Economic Situation in Bangladesh October - December 2022 (Q4 of FY23) on Tuesday.

In the report, MCCI mentioned that Bangladesh's robust economic recovery from the Covid-19 pandemic has been interrupted by the war in Russia-Ukraine, 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 Tk and a decline in foreign exchange reserves.

Unemployment and low investment are other challenges, MCCI said.

To overcome the challenges, the government took quick and decisive measures to address the economic fallout.

The government also needs to take more actions to stabilise foreign exchange reserves, manage inflation, enhance revenue earnings, ensure proper electricity and gas supply for economic activities and extend social safety net programs.

Nevertheless, the economy has been showing some signs of improvement in the quarter under review (Q4 of FY23).

Exports and imports are two important drivers of the economy, and amid the present situation, both 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 remained stable but depreciated notably in recent months.