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29 May 2024

Business Insider Bangladesh

MCCI for taking quick, decisive measures to rebound economy

BI Desk || BusinessInsider

Published: 20:45, 14 March 2023  
MCCI for taking quick, decisive measures to rebound economy

MCCI logo.

The Metropolitan Chamber of Commerce and Industry (MCCI) has underscored the need for taking quick and decisive measures to rebound the country's economy.

At its quarterly review, MCCI observed 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, rise in inflation, negative current account balance, depreciation of the taka and a decline in foreign exchange reserves.

To overcome the pressure, the government took quick and decisive measures to address the economic fallout. The government also needs to take more actions to stable foreign exchange reserve, manage inflation, enhance revenue earnings, ensure proper electricity and gas supply for economic activities, and extend social safety net programmes.

However, in the quarter under review (Q2 of FY23), the economy has been showing some signs of improvement. Export earnings have facilitated economic recovery. The export-oriented garment, leather, plastic, jute and domestic market-oriented steel, food-processing and transport sectors are running in full scale. 

The import payments and inward remittances, however, decreased, which has multiplier effects on other economic sectors. Foreign currency reserve is still somewhat in a satisfactory position but into a weaker trajectory. The overall inflation in August rose to 9.52 per cent, then gradually decreasing, reached 8.71 per cent in December 2022. 

The exchange rate has long been remained stable but depreciated notably in December 2022 in terms of US dollar.

Monetary Policy Stance
Budget 2020-21