According to an estimate, Bangladesh has suffered more than Tk 490 billion loss owing to the political turmoil in the last few months. The turmoil not only hit our economy hard but also snuffed out the golden dream of businessmen due to recurrent blockades. Now the government will have to face daunting challenges for maintaining a healthy GDP growth rate and containing inflation.
The Bangladesh Bank has projected the private sector credit growth at 15.5 per cent by the end of the ongoing fiscal year. But its dream has been set at naught by whimsical politics. The growth till November was 11.13 per cent.
It is a matter of concern that inflation has been rising in recent months. The rate went up by 0.02 per cent in December on average over the previous month when it stood at 7.53 per cent. Now the central bank will have to battle for higher GDP growth through implementing its monetary policy. A cautious monetary policy can change the situation overnight with the help of our economists.
Now the Bangladesh Bank should be more careful than before so that the local currency does not depreciate further. Otherwise, the country's economy will have to face unbearable losses in the business sector.
The central bank may lower some policy rates which will create pressure on the banks to cut lending rates. The stimulus package for the garment sector should also be designed for small and medium size factories as the big factories have the necessary strength to face the disaster. Other sectors too deserve fiscal props to recover the huge losses sustained during months of turmoil. Â
The writer is a student of the Department of Statistics, the Islamic University. maskurulra@gmail.com
Recouping turmoil losses
Md. Maskurul Alam | Published: February 04, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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