Bangladesh’s trade gap and current account deficit have shrunk, but experts warn that it might not be enough to stabilize the economy. The government and the central bank have implemented measures to reduce import payments and decrease the shortfall in the current account, but the erosion of foreign exchange reserves persists. The large shortfall in the financial account, which historically had a surplus, is responsible for the fall in the reserves. The GDP growth rate has also slowed down due to the ongoing impact of the Russia-Ukraine conflict, leading to a shortage of essential goods and fueling inflation. Experts believe that the financial account needs strengthening to restore discipline in the economy. However, the global economic outlook is good, with the US and EU avoiding a recession, and inflation showing a downward trend in developed economies. Experts suggest implementing more foreign-funded projects to help the country mobilize US dollars from external sources to strengthen the financial account.
Economy in trouble despite narrowing trade gap and current account deficit
- Published On May 16, 2023
- 11:57 am
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