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Bangladesh - April 29, 2024

Number 7 danger signal in economy

Mohiuddin Farazi: The country’s economy is increasingly vulnerable to debt and crisis. Economists say that the government has taken various initiatives to deal with the situation, but no light of hope has been seen so far. Economists believe that dealing with the economy is now the biggest challenge for the government.
The government is not denying the economic crisis. Rather, 7 danger signals have been identified by the government in the economy. And it is said by the government that the Ministry of Finance is working to save from this danger. The senior authorities of the government also said that its reflection will be seen in the next budget.

The seven danger signals of the economy which are being clearly observed are:

  1. Irregularities in the banking sector: A chaotic situation is developing in the banking sector. A crisis of public confidence has developed in the banking sector. Various questions have been raised especially about the strategy of bank merger. There is talk about what kind of action will be taken against defaulters and prompt action is being urged against defaulters. Economic analysts feel that this fragile situation in the banking sector could be a major threat to the economy.
  2. Increasing debt dependence: Bangladesh’s debt dependence is increasing. A huge amount of money has to be spent to meet interest and debt obligations. As a result, there will be a big pressure on the foreign reserves in the coming days. Foreign exchange reserves are now below $20 billion and no initiative to increase the reserves is succeeding so far. Some economists also think that the government will have to struggle to meet the debt and interest in the coming days. Economists also feel that this foreign debt repayment in the economy has now become a major headache for the government. The government is also saying that meeting the debt obligations in the coming days is a big challenge for the government.
  3. Inflation: Inflation continues to rise. The average currency for the last 1 year is around 10. As a result, prices of goods are increasing without limit. has gone beyond the purchasing power of the common man and is resulting in public discontent.
  4. Decline in expatriate income: Expatriate income is not increasing as expected. Declining expatriate income is seen as a major source of discomfort for the government.
  5. Dismal picture of domestic resource mobilization: Emphasis is placed on raising domestic revenue to meet the economic crisis. And there is no promising reality in terms of this internal revenue income either. Many economists feel that the National Board of Revenue has so far not been successful in raising domestic revenue.
  6. Corruption: On the one hand, as the economic crisis is increasing, on the other hand, corruption is not decreasing. As a result, economic analysts think that there is no real situation to reduce the economic crisis.
  7. Impact on Power and Export Earnings: Power and energy shortages are expected to create some kind of problem on export earnings as well. In particular, economists believe that the import-dependent energy sector will have a major impact on the economy and export earnings in the coming days. All in all, overcoming these dangers is a major challenge for the government.

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