Decisive measures needed to expedite economic recovery: MCCI

Business Desk :
The Metropolitan Chamber of Commerce and Industry (MCCI) underscored the need for taking quick and decisive measures to boost the economic recovery.
In its latest quarterly review, the MCCI observed that Bangladesh’s robust economic recovery from the Covid-19 pandemic has been interrupted by several factors such as 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, it said in a press release.
To overcome the pressure, the government took quick and decisive measures to address the economic fallout, it said, adding that the government also needs to take more actions to stabilize foreign exchange reserves, manage inflation, enhance revenue earnings, ensure proper electricity and gas supply for economic activities, and extend social safety net programs.
However, in the second quarter of FY23, the economy has been showing some signs of improvement and export earnings have facilitated economic recovery, said the MCCI.
The export-oriented garment, leather, plastic, jute and domestic market-oriented steel, food-processing and transport sectors are also running in full scale.
The MCCI also said 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%, then gradually decreasing, reaching 8.71% in December 2022.
The exchange rate has long remained stable but depreciated notably in December 2022 in terms of US dollar, the MCCI pointed out.