“During July-September period of the current fiscal year, the overall economic situation in the country was positive as indicated by steady improvements in the major economic indicators. But infrastructure deficits and gas and power supply problems are now undermining the performance,” the chamber said in a review report of the economy yesterday.
MCCI said the government should adopt adequate steps to overcome these problems, and achieve and preserve political stability, “which are essential for creating an investment-friendly climate and so crucial to achieve higher economic growth.”
“Although the progress made was below potential, the country experienced stable growth; inflation was under control; the exchange rate remained stable; and foreign exchange reserves rose to a comfortable level,” it added in the Review of Bangladesh Economic Situation in Q1 of the FY2016-17.
During the Seventh Five-Year Plan (SFYP) period, Bangladesh plans to achieve 7.40% GDP growth per annum and reach its goal of becoming a middle-income country by 2021.
To achieve this target, it will need to significantly increase the rate of export growth, generate more investments, improve the overall infrastructure, in particular its roads, railways and port facilities, increase power and gas production, and remove all other infrastructure bottlenecks, the review stated.
It is assumed that the relatively calm political situation that currently prevails will continue in the second quarter of the present fiscal year.
Therefore, both exports and imports can be expected to increase. Remittances may increase with new opportunities for job creation in the Middle East and South-east Asia, the review forecast.