State of the Bangladesh Economy in FY2021-22
Independent Review of
RBD
Bangladesh's Development
Concluding Remarks
The trends of key macroeconomic correlates during the early months of FY22 evince
that many of these are in a recovery trajectory, led by export-oriented sectors.
However, macroeconomic stability is not in a comfortable state anymore. Uncertainty
is looming large at the global level as well
Consequently, policy space for tackling the prevailing and emerging challenges has
become comparatively limited. In this backdrop, trends in recovery, emergent risks
and the available policy space should receive due cognisance while designing and
implementing policy responses
The government needs to opt for a focused and targeted expansionary fiscal policy
reinforced by accommodative monetary policy
Given the current context, a targeted flow of fiscal resources towards the more vulnerable
households alongside the relatively small (and informal) enterprises will generate more
‘aggregate domestic demand augmenting' effect and offer some protection to the
marginalised groups
➤ This becomes even more important given the upward creeping inflation scenario
□ One of the critical measures to be pursued by the government should be downward
adjustment of diesel price in order to decrease tillage, irrigation and transportation
costs so that production cost is reduced
CPD (2021): State of the Bangladesh Economy in FY2021-22 (First Reading)
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