Macro-economy was under pressure in Q1: MCCI

Bangladesh's macro-economy was under pressure in the first quarter of the FY23 thanks to a high rate of US dollar, mounting import payments, negative current account balance, weak remittance inflow and depleting foreign exchange reserve, according to the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI)  

In the July-September review published Saturday, the influential trade body also noted a number of measures to alleviate the squeeze on the economy.   

The MCCI urged the government to stabilise the foreign exchange reserve, manage inflation, boost revenue generation, ensure uninterrupted electricity and gas supply and extend social safety net programmes.

According to the quarterly review, Bangladesh in the July-September quarter was yet to shake off the Covid fallout completely, as the Russia-Ukraine war interrupted the recovery. 

The chamber said the armed conflict led to rising commodity prices in the global market and roiled the supply-chain. The developments contributed to fuming inflation not only in Bangladesh, but in several countries around the world.     

The trade body noted a decrease in remittances and the widening of the current account deficit which intensified the local economic situation. 

The Taka came under pressure and the foreign exchange reserve started declining sharply, said the review.  

In July-September, the MCCI said the foreign currency reserve was somewhat at a satisfactory position, but decreased subsequently. 

The overall inflation in August rose to 9.52% while it fell slightly to 9.10% in September.