Economy poised to regain high growth trajectory in 2024

Bangladesh's economy is poised to regain its high growth trajectory by the next year as price effects of the Russia-Ukraine war have largely stabilised and significant improvement has taken place in containing global pandemic situation, projects the Bangladesh Bank (BB) today.

"With a pandemic-free environment and stabilised conditions from the Russia-Ukraine war, Bangladesh's macroeconomic outlook appears to be stable in the near term, poised to regain its high growth trajectory by 2024," said the BB in its monetary policy for July-December period this year.

The positive outlook by the central bank comes after the provisional estimate by the Bangladesh Bureau of Statistics showed a slowing growth to 6.03 per cent in the current fiscal year ending this month, down from 7.1 per cent in the 2021-22 fiscal year.

The BB said despite the positive developments -- declaration of end to the Covid-19 pandemic by World Health Organisation and falling prices of commodities and energy in 2023 -- rising inflation and exchange rate pressure remain critical challenges that Bangladesh continues to face.

The central bank said it has placed highest priority on containing inflation while vigilantly managing exchange rates and other macroeconomic instabilities.

The BB has decided to increase the policy interest rate to increase the cost of funds for the borrowers, remove lending rate cap as well as moving towards a market-driven unified exchange rate.