State of the Bangladesh Economy in FY2023-24 (First Reading)
Independent Review of
RBD
Bangladesh's Development
The backdrop
ā It was pointed out in CPD's IRBD Third Reading (May 2023) that a large part of
Bangladesh's ongoing macroeconomic challenges originated in external sector performance
and the external balance and that a recovery will need to be triggered where the problems
are manifested in the first place- the external sector and external balances.
Regrettably, the hoped for stabilisation of the external balance is yet to be visible. Although
over the past several months, key policy-makers engaged with external sector management
have been trying to project a bullish stance, with projections of getting out of the current
situation in continuing phases of 2-3 months, the situation has continued to remain
disquieting over the past several months.
ā Key external sector performance correlates such as the state of exchange rate stability,
amount of forex reserves, export performance, availability of forex for L/C openings,
remittance flows and other indicators all suggest that the worrisome developments
experienced in FY23 have continued to inform the external sector performance during the
early months of FY24 as well.
CPD (2023): State of the Bangladesh Economy in FY2023-24 (First Reading)
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