Bangladesh economy gradually recovered after students' protest: MCCI

02 Dec '24

2 min read

Bangladesh economy gradually recovered after students' protest: MCCI

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Bangladesh's economy gradually recovered from instability, sparked by the anti-quota students' protests in July-August, in Q1 FY25, with gradual rises in exports, imports, remittances and foreign exchange reserves, a trade chamber said.
Challenges include inflation, a slowdown in external demand, a revenue collection shortfall, slow public spending, lesser jobs and a sluggish investment climate.

In the first quarter of the current fiscal (FY25, i.e., July 2024-September 2025), Bangladesh's economy gradually recovered from political instability, sparked by the anti-quota students’ protests in July-August, according to the Metropolitan Chamber of Commerce and Industries (MCCI).

The economy has shown some improvement, with gradual increases in exports, imports, remittances and foreign exchange reserves, the chamber said in a press release.

Challenges include high inflation, a slowdown in external demand, a shortfall in revenue collection, slow public spending, reduction in employment opportunities and a sluggish investment climate. Restoring law and order is also an urgent priority, it noted.

Data on the country's industry sector are yet to be available for the quarter under review. However, the sector registered a lower growth of 3.98 per cent in Q4 FY24 compared to 6.25 per cent in Q3, the MCCI observed.

Export earnings in Q1 FY25 increased by 7.62 per cent year on year (YoY) to $11.66 billion. Export earnings in September this year increased by 15.27 per cent YoY to $3.80 billion, but dropped by 5.78 per cent month on month (MoM).

The inflow of remittances saw at $2,404.79 million in September this year—80.22 per cent higher YoY.

The net inflows of foreign direct investment (FDI) in Q1 FY25 decreased YoY by 15.01 per cent to $300 million.

Fibre2Fashion News Desk (DS)

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