The government should target reducing demand through ensuring market-based interest and exchange rates as well as cutting allocation for infrastructure projects to rein in inflation and protect the foreign currency reserves, said economists yesterday.

If there is one indicator that epitomises the government’s mismanagement of the economy in recent times, it is inflation -- which raced to an 11-year high of 9.94 percent in May.

Food inflation rose 40 basis points to 9.24 per cent in May. It was 8.84 per cent in April.

Bangladesh’s exports bounced back in May after declining in the preceding two months riding on increased shipment of garments, the main export earning sector, according to data released by the Export Promotion Bureau (EPB) yesterday.

In his budget speech for FY2023-24 at the national parliament today, Kamal said inflation would be largely controlled from here on.

In 2019, when AHM Mustafa Kamal took charge as the finance minister, the Bangladesh economy was taxing for take-off for its long-haul flight to the developed country club.

Just a year ago, Aminur Rahman, a private sector employee living in Dhaka, could buy a moderate amount of essential goods, including rice, soybean oil, onions, salt and eggs, at Tk 553 from stores in Dhaka city

In June last year when Finance Minister AHM Mustafa Kamal placed the budget in parliament, inflation had already been creeping up and the foreign currency reserves were on the decline. These two had derailed the full economic recovery from a two-year crisis wrought by the Covid pandemic.

Small wooden furniture businesses in Bangladesh are facing a deep financial crisis as the demand for their products has fallen drastically, according to market players.

There are few, if any, central bankers who are currently not taking some public criticism for raising rates. 

Sustaining the development that has taken place in Bangladesh in the past 14 years and curbing inequality are key major challenges facing the economy owing to the fallout of the coronavirus pandemic and the Russia-Ukraine war, said Planning Minister MA Mannan.

Banks in Bangladesh witnessed an accumulation of default loans by Tk 10,964 crore in the first three months of 2023, highlighting the worsening financial health of the banking sector, official figures showed.

The government is going to unveil a Tk 7,61,785 crore budget for the next fiscal year on Thursday, setting containment of high inflation as a major target.

Even though poor people are struggling to make ends meet amid runaway inflation, the government allocation for social safety net programmes may not increase much in the next fiscal year.

The government is yet to take any comprehensive corrective measures to tackle macroeconomic challenges as it has not properly assessed the gravity of the situation in the current fiscal year, an economist said.  

The private investment-to-GDP ratio in Bangladesh declined in the current fiscal year owing to a lower confidence among investors amid the persisting dollar crisis and global uncertainty, higher inflation and a fall in demand for goods in international markets.

Reforms following the IMF prescription should not harm disadvantaged groups

The upcoming budget poses significant challenges – arguably the most challenging in recent times – for economic policymaking in Bangladesh.

Life insurance companies in Bangladesh have continued to put more than half of their investments in treasury bills and bonds in the absence of diversified investment opportunities, official figures showed. 

“This is Mohammadpur, get off,” a child yelled out to the passengers of a leguna, otherwise known as human hauliers, which had reached the area as early as 7:00am.