Finance Minister AHM Mustafa Kamal has said that the conflict between Russia and Ukraine does not affect the country’s macro-economic stability right now, even though the crisis generally affects the economy.
“At this moment, it seems that the crisis will have an impact on the economy of Bangladesh, but it will not put the stability of the country's macro-economy at a great risk,” the minister said while replying to a question from a lawmaker in the parliament on Monday, reports UNB.
"The Russia-Ukraine military crisis is going to hit Bangladesh's economy in the short and medium-terms. What will be its impact, in the long run, depends on the duration of the war,” the finance minister said in his scripted answer.
He said Russia's military operation in Ukraine and the economic sanctions imposed by the western countries on Russia and its ally Belarus will have an adverse impact on the global economy.
Mustafa Kamal said the crisis has destabilised the furnace oil and natural gas markets. “The Russia-Ukraine crisis has affected Bangladesh as well,” he added.
He said the ongoing military crisis and sanctions would inevitably lead to a rise in prices of natural gas, crude oil, fertilisers, wheat, nickel, aluminium and important raw materials for electrical products and related finished goods.
He said a price hike will definitely push up global inflation. The rise in oil and gas prices could lead to higher inflation in the country like food, consumer goods, industrial raw materials and international transport costs increase, he went on.
This crisis could also complicate payments for Bangladesh's garment exports to Russia, said the finance minister.