No alternative to increase investment: MCCI

Dhaka,  Sat,  23 September 2017
Published : 18 May 2017, 14:55:41
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Middle Income Country by 2021

No alternative to increase investment: MCCI

FE Online Report
Though Bangladesh’s economy is progressing well, it is still below its true potential, according to a country’s leading trade body, Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI).

The chamber said: “There is no alternative to raising the level of investment, if Bangladesh is to attain the status of a middle income country by 2021.”

“Inadequate infrastructure, lack of investor confidence in the economy that discourages making fresh investments,” the chamber pointed out in its quarterly economic review releases Thursday.

“Shortage of power and energy are now major impediments to the growth of the economy,” it added.

MCCI, however, also mentioned that the country has achieved a stable average annual growth of 6.16 per cent during the last 12 years (2004-2015).

“There are not many countries that have grown consistently at more than 6.0 per cent for the last six years in a row,” it added.

The leading trade body also observed that during the third quarter (January-March) of the current fiscal year (FY17), the ‘overall economic situation in the country was positive.’

This is reflected in the ‘steady improvements in the major economic indicators.’

The review mentioned that the country experienced stable growth, with inflation under control and stable exchange rate during the period under review.

“During the July-March period of the present fiscal, the agriculture sector performed well, but continuous government support with inputs and finance will be needed to sustain the sector’s growth in the future,” it added.

“The manufacturing sector also did well, although infrastructure deficits, insufficient availability of competent manpower at managerial levels, high cost of bank loans that discourages both local and foreign investors, and gas and power supply problems were undermining the performance of the sector,” it observed.

“Government will need to adopt suitable measures to remove these bottlenecks in order to support the growth of this all-important sector,” it suggested.

- AK
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