The economy may make a turnaround in 3rd quarter of FY 2020-21: MCCI
The economy is likely to overcome the difficulties stemming from the fallouts of the Covid-19 pandemic in the third quarter of the existing fiscal year on the trunk of rising exports, imports, and remittances, said the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka yesterday.
The rate of inflation should be expected to move up in February as a result of the probable rise in some essential commodities, it said in its overview of the monetary situation during October-December 2020 released yesterday.
The trade body said Bangladesh's economy was now rebounding from the Covid-19 shocks as a result of government's steps and the implementation of the stimulus packages, which allowed businesses to withstand the crisis.
A big segment of informal industries, services and other activities have resumed operations, but they appear to be jogging at a much lower level of capacity.
The export-oriented garment and leather, and the domestic market-oriented steel, food-processing and transport sectors aren't running at full capacity yet, said the trade body.
The MCCI said major monetary indicators such as for example remittances, forex reserves, money supply, and inflation are at a satisfactory position.
The exchange rate is definitely remained stable as the current account and balance of payments are also in positive territory.
The positive changes ought to be interpreted carefully, the chamber said.
"Private investors are trying to cope with the problem instead of making further investments."
"Bangladesh is currently facing some major challenges in steering its market to an increased growth trajectory because of slow implementation of development projects, unemployment, low expenditure and the sluggish growth of revenue."
The chamber needed a significant upsurge in public and private investment to maintain competitiveness and generate even more growth.
"Occupation can't grow fast enough when private investment is stagnating."
Private investment in the country has been hovering around 22-23 % of the GDP for quite some time.
Domestic reforms in addition to initiatives to liberalise trade-related policies for enhancing the investment climate are urgently needed to rejuvenate employment growth, it said.
