Staff Report :
The Metropolitan Chamber of Commerce and Industry (MCCI) has emphasised taking some decisive measures to address economic fallout as it’s currently facing post-transition challenges.
Government should now take actions to stabilise foreign exchange reserves, manage inflation, enhance revenue earnings, ensure proper electricity and gas supply for economic activities, and protect small businesses, the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) said on Tuesday.
In the latest publication, titled “Bangladesh’s Economy During FY2023-24 (FY24)” the chamber also mentioned that issues such as smooth logistics, banking services and security in industries needed to be addressed to ensure the revival of economic activities.
Bangladesh’s gross domestic product (GDP) rose 1.66 percent year-on-year in dollar terms to $459.05 billion in FY24. Per capita GDP also rose 1.21 percent to $2,675, while per capita gross national income increased to $2,784, it said.
But this year the country has witnessed a massive mayhem in the backdrop of student protests against government job quotas, which dealt a blow to people’s normal life and business, the leading chamber said.
It would take some time for the interim government to normalise the business activities, as per the report.
However, issues related to smooth logistics, banking services and security in industries needed to be addressed to ensure revival of economic activities.
Also, it is needed to overcome the rise in inflation, slowdown in external demand, weak remittance inflow, shortfall in revenue collection and slow public expenditure, depreciation of the taka and a decline in foreign exchange reserves, it said.
Unemployment situation and low investment are other challenges, the chamber said.
Earlier in March this year, Metropolitan Chamber of Commerce and Industry (MCCI) identified challenges in 6 key economic indicators of the country.
The six parameters are foreign exchange reserves, import volume, domestic debt, export receipts, food stock, and Consumer Price Index (CPI) inflation.
The chamber made the remarks in its review of the economic situation during the second quarter (October-December) of the current financial year 2023-24.
It urged the government 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.
The MCCI, however, mentioned that the economy showed some signs of improvement during the quarter. According to it, the government took quick and decisive measures to address the economic fallout.
