The reforms will, however, benefit the economy in the medium and long run, the July-September issue of Bangladesh Bank Quarterly said.
Bangladesh’s domestic economic activities may slow down in the near term as massive economic reforms are initiated to benefit the economy in the medium and long run, the Bangladesh Bank Quarterly’s July-September issue said.
The external sector has started to recover, reflected in an improved current account balance, a more stabilised exchange rate, and slower erosion of foreign exchange reserves.
The World Bank recently projected that the country’s economy may grow at 4.1 per cent in fiscal 2024-25 (FY25) due to subdued investment and industrial activity amid heightened political uncertainty.
Bangladesh’s economy is witnessing a transitional phase now with the formation of the interim government, while a gradual return to economic normalcy has already started, the central bank observed.
Economic activities were affected by repeated floods in many districts during August and September last year.
Nonetheless, rebounding external demand, reflected in robust export growth and hefty remittance inflows during the July-September period of FY25, depicted a promising momentum towards growth performance in the coming quarters, domestic media outlets reported.
Inflation rose to 9.92 per cent in the first quarter of FY25 from 9.72 per cent in the last quarter of FY24.
Inflation surged to a record high of 11.66 percent in July 2024 before softening in the subsequent two months.
Bangladesh’s external sector has started to recover, reflected in an improved current account balance, a more stabilised exchange rate, and slower erosion of foreign exchange reserves, it added.
Fibre2Fashion News Desk (DS)
