Second wave derails recovery: MCCI
The second wave of coronavirus infections and subsequent lockdowns have derailed Bangladesh's financial recovery from the coronavirus pandemic, said the Metropolitan Chamber of Commerce and Industry (MCCI) yesterday.
Just when the country was hoping to go at full speed towards recovery from the fallout of the pandemic, it had to choose lockdowns once more to support the spread of the deadly virus.
"This cut back disruptions in the lives and livelihoods for the persons with the resultant uncertainty for the economy," said the chamber in its recent quarterly review.
Amidst the global lockdowns, financial stagnation and an area 66-day public holiday, the government's stimulus packages supported various businesses as the vaccination campaign beginning earlier this season partially addressed fears, it said.
Exports and remittances have done well. The latter aided the rural economy by sustaining consumption demand, which has multiplier effects, especially on the tiny and medium industry, said the chamber.
The inflation rate is in order, and foreign currency reserve in a reasonable position, it said.
The exchange rate has long remained stable as the current account and balance of payments are also in a positive trajectory, said the MCCI.
However, some key economical indicators appear less-promising than projected earlier, it said.
"The fiscal framework continues to be weak because of poor achievements, more specifically, both when it comes to earnings mobilisation and public expenditure."
The unemployment situation and low investment are also challenges. A substantial increase in public and private investment is essential to keep competitiveness and generate further growth, it said.
Under these circumstances, soon after the quarter under review, the country was unexpectedly hit by the next wave with a gradual upsurge in daily positivity rates, it added.
The global economy has fallen right into a recession again, that will have an indirect impact. "Therefore, performances of export, import, and remittances might not exactly increase needlessly to say," the review added.
