High interest rates, weak exports adding pressure on economy: DCCI

High interest rates, a declining tax-to-GDP ratio and stagnation in export markets are putting additional pressure on Bangladesh’s economy, Dhaka Chamber of Commerce and Industry (DCCI) President Taskeen Ahmed has said.

He also warned that restoring stability in the economy would not be possible without policy reforms, export diversification and the exploration of new markets.

Taskeen Ahmed made the remarks at a seminar organised by the DCCI at its auditorium in the capital on Monday.

The seminar, titled “Bi-annual Economic State & Future Outlook of Bangladesh Economy: Private Sector Perspective,” brought together policymakers, economists and business leaders.

State Minister for Planning Zonayed Abdur Rahim Saki joined the seminar virtually as the chief guest. Dr Monzur Hossain, Member (Secretary) of the General Economics Division of the Bangladesh Planning Commission, AHM Jahangir, Additional Secretary and Project Director of the Support to Sustainable Graduation Project (SSGP), and Dr Mohammad Akhtar Hossain, Chief Economist of Bangladesh Bank, attended as special guests.

In his address, Taskeen Ahmed highlighted several challenges facing the economy, including global economic instability stemming from the conflict in the Middle East, the country’s upcoming graduation from the least developed country (LDC) status, monetary policy tightening, inflation, private and foreign investment trends, international trade, agriculture, industry and manufacturing, CMSMEs, energy and power, logistics infrastructure and the financial sector.

He said the recent conflict in the Middle East has posed a serious threat to global trade and supply chains.

“Since a significant portion of energy used in Bangladesh’s industries is import-dependent, particularly from the Middle East, the ongoing conflict in the region has created uncertainty and concern among private sector operators,” he added.

The DCCI president also noted that the new tariff policy introduced by the United States could negatively affect both domestic and global trade and investment.

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