Bangladesh economy recovering gradually from political instability: MCCI

The Metropolitan Chamber of Commerce and Industry (MCCI) has observed that the economy has been recovering gradually from political instability that began in the first week of July 2024. 

In a report titled "Review of Economic Situation in Bangladesh October-December 2024 (Q2 of FY25), the MCCI today mentioned that exports posted robust growth during the period, along with increased earnings from remittance inflows.

According to the report, the slide experienced by the foreign exchange reserves was halted, and the exchange rate of the taka against major currencies stabilised, although some volatility in the reserve position continues to persist.

It stated that improvements in trade, the current account balance, and the overall balance of payments allowed for some easing of import restrictions.

However, the report said, 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 Bangladesh Bank has maintained a tight monetary policy stance to curb inflation and stabilise the exchange rate. 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.

The MCCI report noted that restoring law and order is indeed a critical priority to create a stable environment for economic activities.