The Metropolitan Chamber of Commerce and Industry has said that the country’s economy was progressing below its true potential.
‘Bangladesh’s economy is progressing well, but below its true potential as infrastructure bottlenecks and shortage of power and energy generally prevent its performance at full capacity,’ the MCCI said in its first quarterly review on economic situation of the country.
The MCCI on Monday released the review for the period between July and September of the current fiscal year 2017-2018.
The major macroeconomic indicators like per capita income, foreign currency reserve, import and foreign direct investment, however, showed a strong positive trend during the period, it said.
The overall economic situation was positive despite the presence of some risk factors such as marginal growth in remittances, slower growth in the export receipts, and a higher rate of inflation.
Bangladesh will need to 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 to achieve the target of economic growth at 7.40 per cent during the Seventh Five Year Plan period, the MCCI said.
According to the report, the country’s agriculture, industry, construction and services sectors performed well in the period but frequency of power outages has been on the rise in recent weeks despite a substantial increase in overall electricity production.
Infrastructure deficits and gas and power supply problems are now undermining the performance of all productive sectors of the economy, it said.
The government should adopt adequate steps to overcome these problems and achieve and maintain political stability, which are essential for creating an investment-friendly climate, so crucial to achieve higher economic growth, it added.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Miscellany