Political calm to help boost exports, remittances

Dhaka,  Tue,  19 September 2017
Published : 09 Aug 2017, 21:47:42

Political calm to help boost exports, remittances

MCCI projection for Q3 thru September
FE Report

Exports, imports and remittances will increase further in the coming days if the present political stability prevails, an elite chamber said.

In its quarterly review released on Wednesday, the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), projected that the foreign exchange reserve is likely to fall in July and September due to the payment to the Asian Clearing Union (ACU) against imports.

"The rate of inflation can be expected to go up in the coming months because of increased demand ahead and during the Eid-ul-Azha," said the quarterly economic review through June.

The review said merchandise exports of US$3,044 million in June increased to $3,080 million in July, and will further increase to $3,190 millions in August and $3,210 in September.

The import will be $4,560 million in August and $4,650 million in September from $4,490 million in July in 2017-18 fiscal year, the review projects.

The remittance inflow is likely to increase to $1,310 million in August and $1,360 million in September from $1,270 million in July, according to the review.

The foreign exchange reserves might go down to $33,850 million in September from $33,990 million in August due to the payment against imports.

The point to point inflation will likely be 6.20 per cent in September from 5.99 per cent in July of FY 2017-18, the quarterly projection said.

The chamber said the overall economic situation in the last quarter of FY17 was positive as indicated by steady improvements in the major economic indicators despite negative growth in remittances; marginal growth in the export receipts and higher inflationary pressures.

The MCCI said the economy was progressing well, but below its true potential.

In FY'17, the agriculture sector performed well, but continuous government support with inputs and finance will be needed to sustain the sector's growth.

"Services and manufacturing sectors also did well but the sectors need government support in different fields. In particular, infrastructure deficits and gas and power supply problems were undermining the performance of all productive sectors of the economy."

The chamber stressed the need for adopting suitable measures to remove the bottlenecks in order to support the growth of the sectors.

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