The second wave of coronavirus infections and subsequent lockdowns have derailed Bangladesh’s economic recovery from the coronavirus pandemic, said the Metropolitan Chamber of Commerce and Industry (MCCI) yesterday.
Just when the country was hoping to move at full speed towards recovery from the fallout of the pandemic, it had to go for lockdowns once again to contain the spread of the deadly virus.
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“This brought back disruptions in the lives and livelihoods for the people with the resultant uncertainty for the economy,” said the chamber in its recent quarterly review.
Amidst the global lockdowns, economic stagnation and a local 66-day public holiday, the government’s stimulus packages supported various businesses while the vaccination campaign beginning earlier this year 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 small and medium industry, said the chamber.
The inflation rate is under control, and foreign currency reserve in a satisfactory position, it said.
The exchange rate has long remained stable while the current account and balance of payments are also in a positive trajectory, said the MCCI.
However, some key economic indicators appear less-promising than projected earlier, it said.
“The fiscal framework continues to be weak in view of poor achievements, more specifically, both in terms of revenue mobilisation and public expenditure.”
The unemployment situation and low investment are also challenges. A significant increase in public and private investment is necessary to maintain competitiveness and generate further growth, it said.
Under these circumstances, just after the quarter under review, the country was unexpectedly hit by the second wave with a gradual increase in daily positivity rates, it added.
The global economy has fallen into a recession again, which will have an indirect impact. “Therefore, performances of export, import, and remittances may not increase as expected,” the review added.
