Zahid Hussain

Bangladesh has delivered decent economic growth relative to the rest of the globe braving the coronavirus pandemic, supply chain disruptions, successive wars and macroeconomic stress. However, labour market recovery since the pandemic has been anemic. There are lingering concerns about growth lacking the shine of good jobs.

Even though the challenges are pointed out in the MPS, they fall short of measures to yield visible results

The Bangladesh economy has entered 2024 with acute cost-of-living pressures, external payment imbalances, shortage of dollar liquidity, elevated illicit capital outflows, and vulnerable balance sheets in several, not all, bank and non-bank financial institutions.

The Bangladesh economy faced extended economic distress after recovering partially from the pandemic before facing the cost-of-living increases and external payment imbalances. Economic activity slowed in 2023 with persistently high inflation and erosion of external buffers.

Says economist Zahid Hussain in an interview

The poverty trend emerging from valid comparisons with the previous rounds of HIES may or may not be different.

There has also been very little policy response to help out families at the bottom of the income ladder

The beginning of a new year is not just a moment for resolution. We are in a season that is about both reflecting on the past and looking forward to the future. 

A key objective of issuing a monetary policy statement on the eve of the new fiscal year is to provide forward guidance to the public about the likely future course of monetary policy. When credible, individuals and businesses use this information in making decisions about spending and investments.  

A key objective of issuing a monetary policy statement on the eve of the new fiscal year is to provide forward guidance to the public about the likely future course of monetary policy. When credible, individuals and businesses use this information in making decisions about spending and investments.

Nominal wage growth at the low skill level overall has fallen behind the headline inflation.

The current inflationary pressures are attributable largely to the rise in international commodity prices and the exchange rate depreciation, albeit to a relatively smaller extent. The latest data from the Bangladesh Bureau of Statistics show there was a spike in domestic consumption demand as well.

The growth estimate for fiscal 2021-22 appears directionally consistent with the high-frequency growth indicators such as exports, imports, private credit and revenue collections.

Over the last 50 years of Bangladesh’s existence, we have seen many finance ministers. AMA Muhith was among those few who this nation will remember for making the job appear joyful and free from the pains of balancing difficult trade-offs amid resource constraints.

Inflation is rising in Bangladesh as it is in several advanced and emerging economies. Increased headline inflation in February was driven by a spike in food inflation. The 12-month moving average inflation has been on an upward trend since the November 2019 to October 2020 period.

The economic damage from supply disruptions triggered by the confluence of events around the Russian invasion of Ukraine would be severe in some countries and industries and less so in others depending on the depth and breadth of economic ties,

There was no doubt that the growth in gross domestic product (GDP) in FY21 was better than the growth in FY20 even though the pandemic was present with all its ferocity in both years.

The Bangladesh Bureau of Statistics (BBS) data provides a somewhat mixed picture on how labour is benefitting from the ongoing economic recovery in Bangladesh.

Consumer price growth has spiked, driven by non-food inflation which is approaching 7 per cent. Inflation in Bangladesh is catching up with global trends. As in the case of the rest of the world, cost-push has been the most important driver which in turn came from increases in energy prices. 

Timely revisions to data on GDP and its components determine the accuracy of national accounts estimates and their comparability across countries.