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A gradual recovery of Bangladesh economy during the second quarter of this fiscal year is a bit retarded by 'substantial' hurdles like inflationary pressures, revenue shortfall and sluggish investment, a business body says.
"In the quarter under review (October-December of FY25), the economy had been recovering gradually from political instability that began in the first week of July 2024," says the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka.
The country's elite trade body makes the observations in its review styled 'Economic Situation in Bangladesh for October-December period of the FY25'.
"However, the economy is still facing substantial hurdles, including inflationary pressures, a shortfall in revenue collection, slow public spending, diminished job opportunities, a sluggish investment climate and the need to rebuild public confidence in the banking system," the MCCI review reveals.
Other hurdles mentioned include slow public spending, diminished job opportunities and the need to rebuild public confidence in the banking system.
The country's leading trade body has also stressed the need for restoring law and order to create a stable environment for the country's economic activities.
According to the MCCI review, exports posted a robust growth during the period under review, as also witnessed in the earnings from inward remittance.
However, some volatility in the reserve position continues to persist, the MCCI says, adding that improved trade and current-account balance, as also the overall balance-of-payments situation, allowed going for some de-restriction of import activities.
The Bangladesh Bank has maintained a tight monetary-policy stance to curb inflation and stabilize the exchange rate, the MCCI notes.
"The central bank's efforts, along with the positive trends in exports and remittances, are expected to support the broader economic recovery in the coming months," it predicts.
The MCCI has forecast upward trends in the country's export receipts, import values and inward remittance at the end of the third quarter of the current fiscal, 2024-25.
According to the trade body, the country's export receipts might reach US$4.52 billion for the month of February and the earnings would cross $4.97 billion at the end of March.
The country's import payments would also rise to exceed $6.74 billion by the end of February and $7.09 billion by March-end, the leading chamber projects.
However, inward remittances are expected to be $2.28 billion and $2.52 billion at the end of February and March next respectively.
On the other hand, the rate of point-to-point inflation is expected to decline further to 9.70 per cent at the end of March next while the country's foreign- exchange reveres might reach $26.49 billion by March-end, it projects.
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