The government is not moving at full throttle in bringing discipline to the banking sector, implementing reforms wholeheartedly, taking measures against syndication, and bringing money launderers under the rule of law, said a top economist.

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.

Bangladesh does not have too many policy options other than reducing consumption of goods and services and making the exchange rate flexible in order to ensure macroeconomic stability, said a central bank report.

Dealing with these two major challenges is essential for macroeconomic stability

Both global and local macro-challenges can have serious implications for the people of Bangladesh

Specific policy incentives are needed to stimulate the economy and revive the labour market.

Bangladesh needs proper macroeconomic management to avoid middle income trap