Two-thirds indicators signal post-election economic challenges: MCCI
The weaker parameters are forex reserves, import volume, domestic debt, export receipts, food stock and inflation, it says
Six out of nine key economic indicators, prepared by the Bangladesh Bank, signal the new government is facing significant economic challenges, said the Metropolitan Chamber of Commerce and Industry (MCCI).
The top-tier Dhaka-based trade body in its quarterly "Review of Economic Situation in Bangladesh for October-December 2023," said the weaker parameters are foreign exchange reserves, import volume, domestic debt, export receipts, food stock and CPI inflation.
Economists attribute the issues to persisting global and local adversities, the MCCI said, adding the government, to overcome the situation, took quick and decisive measures to address the economic fallout.
Keep updated, follow The Business Standard's Google news channel
"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 improve the food situation."
Nevertheless, the economy has been showing some signs of improvement in the quarter under review (the second quarter of fiscal year 2023-24), it added.
Exports and imports are two important drivers of the economy, and amid the present situation, both the areas have done better, said the trade body in its quarterly review published today.
However, there was a slowdown in external demand, weak remittance inflow, shortfall in revenue collection and slow public expenditure, rise in inflation, depreciation of the taka, a decline in foreign exchange reserves, unemployment situation and low investment in recent months, the MCCI raised its red flag.
