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Country’s economy has revived from setback as major indicators – export, remittance and private sector credit flow saw upward trend in the first two months of the current fiscal year.
Bangladeshi companies exported goods and services worth $ 3.98 billion in the first month of the current fiscal year 2022-23, according to Export Promotion Burro (EPB) data.
The private sector credit stood at Tk 13.52 trillion at end of July and the remittance inflow increased by $2.04 billion, around 12.06 percent higher year-on-year.
Economists see the upward trend in major indicators as positive sign for the country while the global economy is struggling with high inflationary pressure.
Agrani Bank Chairman Zaid Bhakht thinks the upward trend in macro-economic indicators is a result of long term policy measures taken by the government.
“During early period of corona pandemic, the remittance inflow went down. From 2021, its kept a moderate growth over the months. Besides, the attractive rate of dollar also inspired expatriates to send money home,” Dr Bhakht told the Daily Sun.
The eminent economist thinks the central bank measures to discourage import was not so effective in the situation when the global supply chain system was disrupted recently.
“The banks should maintain caution before issuing credit. We should ensure all credit for productive sectors, unless the inflationary pressure will make negative impact,” he added.
Bangladeshi exports volume has been increased by 14.72 percent year-on-year in July. The export growth was 37.19 percent in June. The growth of credit in the private sector was 13.95 percent in July and 13.66 percent in June.
Policy Research Institute (PRI) Executive Chairman Ahsan H Mansur said the recent factors of economy means positive for the country.
“The import has been declining with couple of policy measures. Export earning is growing. However, the hike of private sector credit may a concern for inflation. There is no alternative to interest rate hike to tame the inflationary pressure,” Dr Mansur, also chairman at Brac Bank, told the Daily Sun. The economists recommended for unifying the rate for foreign currency exchange especially for US dollar to keep the situation stable.
Policy Exchange Chairman Masrur Reaz thinks the stability of macro-economic situation can be assessed after continuing positive trends for couple of months.
“The export earnings make us happy. On other hand, US slowdowns the orders and the recession in Europe is coming. So, at this moment, we should focus on keep connect with the market to do business in future. In terms of remittance, I think the inflow will continue due to high price of dollar,” Dr Masrur told the Daily Sun.
The economist recommended for controlling the higher growth of private sector credit to tam inflation in strong measures.
(DS)
