- Lack of structural and institutional reforms is holding back private investment
- These are impacting on mid-term drivers of growth i.e. human capital/resource
- Inclusivity of economic growth is also affected
- All these may lead to structural slowdown which will undermine sustainability of the economic growth
Dr Debapriya Bhattacharya, member of the CPD Board of Trustees and a distinguished fellow, has questioned how GDP growth can accelerate without the acceleration of private investments.
Macro-economy is currently in the most vulnerable situation, he said at a press briefing organised by the Centre for Policy Dialogue (CPD) at the Cirdap Auditorium on November 3.
"How can the GDP growth accelerate without the acceleration of private investments? If the government fails to bring any reform in the financial sector, then the macro-economic scenario could fall into a more vulnerable situation," Debapriya said.
"Without any reform in the financial sector and ensuring accountability in revenue mobilisation and expenditure, the operation against casino will not be coherent," he added.
The CPD raised red flags on four areas – revenue mobilisation, banking sector, capital market, and balance of payment – while presenting a report titled "State of the Bangladesh Economy in FY2019-20".
The CPD report said the revenue collection scenario in the first quarter of fiscal year 2019-20 did not appear too promising. The think tank expressed concerns that the revenue deficit this year could be bigger than that of previous year.
The CPD also expressed concerns about governance in the banking sector. They said all major parameters of the banking sector indicate its persistent fragility with no signs of revival on the horizon.
"Capital market volatility has aggravated further, leading to a crisis situation. We observed that listed companies offered low dividend during the last fiscal year," said the CPD.
"Despite not having any price sensitive information, prices of Z category shares have increased abnormally," it added.
Distinguished Fellow Mustafizur Rahman said, "Our traditional strength in overall balance of payment is starting to become weak gradually."