Bangladesh economy faces a fresh blow: MCCI
Bangladesh's economy is facing just one more blow due to the resurgence of Covid-19, the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) has said.
The economy showed signs of recovery in the 3rd quarter (Q3) of fiscal year 2020-21, it added.
Bangladesh was unexpectedly hit by the next wave of coronavirus with a gradual upsurge in daily positivity rates just when it was hoping to move at full speed towards recovery from the fallout, the MCCI cited.
In its quarterly review for January-March 2021, the chamber said coronavirus lockdown once more brought back disruptions to the lives and livelihoods of individuals with the resultant uncertainty for economy.
Global lockdowns and monetary stagnation in addition to a 66-day public holiday primarily in Bangladesh as a result of outbreak of Covid-19 led to a disruption to the country's monetary activity.
However the country's economy have been showing signs of recovery in Q3 of FY21, in line with the country's one of the oldest trade bodies.
Financially and socially vulnerable people were mostly impacted through the outbreak of the plague, it stated.
However, the government's stimulus packages provided much-needed support to businesses at various levels.
The vaccination campaign also partially addressed worries of the pandemic, it mentioned.
"Due to this fact, lockdown was lifted, economic activity started recovering to the pre-pandemic level and health emergency alerts were lowered through the quarter under review," said the MCCI.
The stimulus package comforted business groups, from large farms to petty micro-enterprises, which eventually helped the economy reboot, it mentioned.
Export and remittance -- two important financial drivers -- did well amid the pandemic, the MCCI said.
Inward remittance had an enormous positive effect on rural economy to sustain the domestic consumption demand, which has multiplier effects on other economic sectors, especially the tiny and medium industry.
Inflation rate remained in order and foreign-currency reserve was in a reasonable position.
Exchange rate had always been stable while the current account and balance of payments account are also in positive trajectory.
On the other hand, a number of the key economic indicators look like less promising than projected earlier, said the MCCI quarterly review.
"The fiscal framework continues to be weak because of poor achievements, more specifically, both when it comes to revenue mobilization and public expenditure," it said.
Also terming unemployment situation and low investment challenging areas, the MCCI said you will find a need for boosting both public and private investment to keep up competitiveness and generate further growth.
In its own projections on some economical indicators, the MCCI said the country's export, import and inward remittance are anticipated to go up by the end of June.
Export earnings might reach $3,630 million at the end of June from $3108 million in May and import payments would also rise to $6650 million from $6490 million.
However, the quantity of remittance might go up to $2,280 million through the period in question from around $2,171 million in May, projected the MCCI.
The economy showed signs of recovery in the 3rd quarter (Q3) of fiscal year 2020-21, it added.
Bangladesh was unexpectedly hit by the next wave of coronavirus with a gradual upsurge in daily positivity rates just when it was hoping to move at full speed towards recovery from the fallout, the MCCI cited.
In its quarterly review for January-March 2021, the chamber said coronavirus lockdown once more brought back disruptions to the lives and livelihoods of individuals with the resultant uncertainty for economy.
Global lockdowns and monetary stagnation in addition to a 66-day public holiday primarily in Bangladesh as a result of outbreak of Covid-19 led to a disruption to the country's monetary activity.
However the country's economy have been showing signs of recovery in Q3 of FY21, in line with the country's one of the oldest trade bodies.
Financially and socially vulnerable people were mostly impacted through the outbreak of the plague, it stated.
However, the government's stimulus packages provided much-needed support to businesses at various levels.
The vaccination campaign also partially addressed worries of the pandemic, it mentioned.
"Due to this fact, lockdown was lifted, economic activity started recovering to the pre-pandemic level and health emergency alerts were lowered through the quarter under review," said the MCCI.
The stimulus package comforted business groups, from large farms to petty micro-enterprises, which eventually helped the economy reboot, it mentioned.
Export and remittance -- two important financial drivers -- did well amid the pandemic, the MCCI said.
Inward remittance had an enormous positive effect on rural economy to sustain the domestic consumption demand, which has multiplier effects on other economic sectors, especially the tiny and medium industry.
Inflation rate remained in order and foreign-currency reserve was in a reasonable position.
Exchange rate had always been stable while the current account and balance of payments account are also in positive trajectory.
On the other hand, a number of the key economic indicators look like less promising than projected earlier, said the MCCI quarterly review.
"The fiscal framework continues to be weak because of poor achievements, more specifically, both when it comes to revenue mobilization and public expenditure," it said.
Also terming unemployment situation and low investment challenging areas, the MCCI said you will find a need for boosting both public and private investment to keep up competitiveness and generate further growth.
In its own projections on some economical indicators, the MCCI said the country's export, import and inward remittance are anticipated to go up by the end of June.
Export earnings might reach $3,630 million at the end of June from $3108 million in May and import payments would also rise to $6650 million from $6490 million.
However, the quantity of remittance might go up to $2,280 million through the period in question from around $2,171 million in May, projected the MCCI.
Source: https://thefinancialexpress.com.bd