May 26, 2024, 2:16 am

7 danger signals identified in Bangladesh’s economy

  • Update Time : Tuesday, April 30, 2024
  • 12 Time View
Photo: Collected

TDS Desk:
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, however, no light of hope has been seen so far. Economists believe that dealing with economic problems is the biggest challenge for the Government now.
The Government is not denying the economic crisis. Rather, they identified seven danger signals in the economy. 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 7 danger signals in the economy that are being clearly observed are –
1. Irregularities in Banking Sector: A chaotic situation is brewing in the banking sector. A crisis of public confidence has been seen in the banking sector. Various questions have been raised especially about the strategy of bank mergers. There is a talk about what kind of action will be taken against defaulters and prompt action is being urged against them. “This fragile situation in the banking sector could be a major threat to the economy,” economic analysts fear.
2. Increasing debt dependency:
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. The Government is also saying that meeting the debt obligations is a big challenge in the coming days.
3. Inflation:
Inflation continues to rise. The average currency for the last one year is around 10. As a result, prices of daily commodities are increasing without limit, going beyond the purchasing power of the general people, and resulting in public discontent.
4. Decreasing Expatriate Income:
Expatriate income is not growing as it should have been and the decline in expatriate income is considered to be a major source of discomfort for the Government.
5. Disappointing image in internal resource extraction:
Emphasis is placed on raising internal revenue to meet the economic crisis. However, there is no promising reality in terms of this internal revenue income either. Many economists feel that the National Board of Revenue (NBR) 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. Hit on power and export earnings:
If there is a power and energy crisis, it is expected that some kind of problems will be created on the export earnings. Economists, in particular, believe that the import-dependent energy sector will have a major impact on the economy and export earnings in the days ahead. All in all, overcoming these dangers is a big challenge for the Government.

 

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