The Metropolitan Chamber of Commerce and Industry (MCCI) has urged the Bangladeshi government to take further action to address pressing economic concerns, despite signs of improvement in the second quarter (Q2) of the current fiscal year (FY24).

While commending the government's initial efforts to mitigate the global and local economic fallout, the MCCI, in its review of the economic situation for October-December 2023, highlighted six key areas requiring further attention:

  • Foreign exchange reserve stability: The review pointed towards a decline in reserves, urging the government to implement additional measures for stabilization.
  • Inflation management: Rising Consumer Price Index (CPI) inflation poses a challenge, requiring further efforts to bring it under control.
  • Revenue enhancement: Shortfall in revenue collection necessitates strategies to improve government income.
  • Ensuring reliable energy supply: Consistent electricity and gas supply is crucial for sustaining economic activity.
  • Food security improvement: The review emphasized the need to address food stock concerns.

Six out of nine key economic indicators, as identified by the Bangladesh Bank, are currently showing signs of weakness, according to the MCCI. These indicators include foreign exchange reserves, import volume, domestic debt, export receipts, food stock, and CPI inflation.

Despite these challenges, the Bangladeshi economy exhibited positive signs in Q2 FY24, with both exports and imports performing better than expected. However, the MCCI also noted a slowdown in external demand, a decline in remittance inflow, and sluggish public expenditure in recent months. Additionally, concerns remain regarding rising unemployment and low investment levels.

The MCCI's review serves as a wake-up call for the Bangladeshi government, urging them to address these economic vulnerabilities while capitalizing on positive developments. By implementing effective policies and fostering collaboration with the private sector, Bangladesh can navigate the current economic climate and ensure sustainable growth in the long term.