Govt needs to take more action to overcome ongoing economic crisis: MCCI

The Metropolitan Chamber of Commerce and Industry (MCCI) has recommended that the government takes 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.

MCCI made the recommendation in the review of the economic situation in Bangladesh during January-March 2023 where it stated that Bangladesh's economy, which is one of the fastest-growing ones in the Asia-Pacific region, faces some challenges.

Robust economic recovery from the pandemic has been interrupted by the Russia-Ukraine war, recent price rise of essential commodities, weak remittance inflow, a shortfall in revenue collection and slow public expenditure, widening of Bangladesh's current account deficit, depreciation of the Taka and a decline in foreign exchange reserves, it added.

The unemployment situation and low investment are other challenges. A significant increase in public and private investment is necessary to maintain competitiveness and generate further growth, it opined.

Based on observations in the preceding nine months of this fiscal year, the MCCI has made its projections on some selected economic indicators for the fourth quarter (April-June) of the current fiscal year.

It said the performances of the selected economic indicators are mixed. Exports decreased in April 2023 due to lower growth of apparel export; however, it may increase in the next two months. Import may increase slowly during the fourth quarter of FY23.

Remittances may increase in the next two months. Inflation, however, can be expected to go down slightly in the last quarter of FY23.