Policies needed to mitigate emerging challenges affecting economic recovery
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Sunday
August 14, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
SUNDAY, AUGUST 14, 2022
Policies needed to mitigate emerging challenges affecting economic recovery

Supplement

Md Tuhin Ahmed
20 January, 2022, 03:35 pm
Last modified: 23 January, 2022, 04:02 pm

Related News

  • China plans 'great efforts' to consolidate economic recovery
  • Policy views of final two candidates in race to succeed UK's Boris Johnson
  • New monetary policy to prioritise curbing rising commodity prices
  • Time for a macro policy change?
  • Industrial loan growth 33% in Jan-Mar

Policies needed to mitigate emerging challenges affecting economic recovery

Md Tuhin Ahmed
20 January, 2022, 03:35 pm
Last modified: 23 January, 2022, 04:02 pm
Picture: TBS
Picture: TBS

Covid-19 has been a massive shock to the global economy, the effects of which have yet to completely normalise due to the emergence of multiple variants. Nonetheless, with most of the economies in the world on the path towards recovery and normalcy – Bangladesh is no different.

While there have been setbacks due to a sudden rise in cases and subsequent lockdowns in the recent past, there has been much progress in terms of distribution of the Covid-19 vaccine and businesses are returning to regular activities. As estimated by research organisation SANEM, firms have been able to recover 56% of their businesses in September 2021 since the pre-pandemic situation (March 2020), and on average 55% of their employees have got at least one dose of vaccine as of September 2021. Despite such progress, some emerging challenges--the declining trend of remittances, the increasing trend of inflation, the new Covid-19 wave in Europe, and the need for wider coverage of vaccines are the major barriers to the path of strong economic recovery in Bangladesh.

Emerging challenges

Remittances, one of the drivers of the economy, are falling in recent months. The World Bank has also projected a slower remittance growth of 4.54% this year which is lower compared to that of India and Pakistan. Slower pace of outmigration, new migration policies in Malaysia and Gulf countries, and new restrictions to contain the spread of the virus in some European countries are the major reasons behind the declining trend of remittances. Inflationary pressures have added some more challenges to the recovery path as higher food prices and the lingering consequences of rising oil prices might keep price pressures in place for some time. The domestic price hike of fuel has also contributed hugely to disruption in all of the sectoral supply chain. The new wave of Covid-19 is warned by the public health experts as they indicated the current trend of falling Covid-19 cases in Bangladesh might well be the calm before a devastating storm. Moreover, more than 50% of people who are still waiting to get at least one dose of vaccine, are in a vulnerable position.

Policies to mitigate emerging challenges

There is no doubt that proper utilisation of remittances is of paramount importance to strengthen the path of economic recovery. The government can therefore increase its incentive percentage on the remittances received through the formal channels (the incentive has been raised from 2% to 2.5% from 1 January 2022). As observed, there is a slow pace in issuance of work visas particularly in Saudi Arabia, Oman, Libya and Gulf countries. The Gulf countries also demand more skilled workers than unskilled ones. It is therefore required to provide skill training to the workers who want to migrate. The problem of undocumented workers in some countries like Malaysia needs to be resolved through discussions with labour receiving countries.

The recent hikes in prices of commodities are mainly because of the fuel price hikes as it is interlinked to the commodities' production and transportation processes. As the economy is struggling to recover from the unprecedented crisis, such a policy change was not timely at all. New policies need to be formulated to lessen the inflationary pressures. Bangladesh should prepare to combat the third wave of Covid-19 as new cases (of Omicron) are rising rapidly in Europe and other countries including India. In this regard, the effort should be continued for procurement of vaccines and mass inoculation programmes across the country.


Md Tuhin Ahmed is a Senior Research Associate at South Asian Network on Economic Modeling (SANEM).

Bangladesh / Economy

Policy / Economic recovery

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Fuel prices to be cut once they drop globally: PM
    Fuel prices to be cut once they drop globally: PM
  • Banks limited to profit highest Tk1 per dollar
    Banks limited to profit highest Tk1 per dollar
  • From left Afzal Karim, Murshedul Kabir and Mohammad Jahangir
    Sonali, Agrani and Rupali banks get new MDs

MOST VIEWED

  • US Independence Day Supplement
    US Independence Day Supplement
  • ‘We had to be big and effective, not small and beautiful'
    ‘We had to be big and effective, not small and beautiful'
  • Sir Fazle Hasan Abed's birth anniversary
    Sir Fazle Hasan Abed's birth anniversary
  • Ensure low-cost, hassle-free labour migration: Stakeholders
    Ensure low-cost, hassle-free labour migration: Stakeholders
  • Bangladesh on track towards digital inclusion
    Bangladesh on track towards digital inclusion
  • Photo: TBS
    51 years of independence: State of our public health

Related News

  • China plans 'great efforts' to consolidate economic recovery
  • Policy views of final two candidates in race to succeed UK's Boris Johnson
  • New monetary policy to prioritise curbing rising commodity prices
  • Time for a macro policy change?
  • Industrial loan growth 33% in Jan-Mar

Features

Photos: M Aminur Rahman

Mallik Ghat flower market: the biggest hub for flowers in Asia

7h | In Focus
Infigraphic: TBS

The dollar crunch chronicles

13h | Panorama
The proposed playground for disabled people has long been left to grow bushes on the premises of the National Parliament Building in the city. Photo: Noor-A-Alam

Whatever happened to the ‘promised land’ for the disabled?

11h | Panorama
Sketch: TBS

India’s 75th anniversary is one to forget

10h | Panorama

More Videos from TBS

"We got caught in the cyclone while shooting Hawa"

"We got caught in the cyclone while shooting Hawa"

1h | Videos
Get your child's Covid vaccine registration done in few easy steps

Get your child's Covid vaccine registration done in few easy steps

1h | Videos
UN expresses concern over Ukraine's Zaporizhia nuke plant

UN expresses concern over Ukraine's Zaporizhia nuke plant

2h | Videos
ADB's $9.46B coming to cover development costs

ADB's $9.46B coming to cover development costs

4h | Videos

Most Read

1
Dollar crisis: BB orders removal of 6 banks’ treasury chiefs 
Banking

Dollar crisis: BB orders removal of 6 banks’ treasury chiefs 

2
Photo: Collected
Transport

Will Tokyo’s traffic model solve Dhaka’s gridlocks?

3
Representational Image. Photo: Collected
Bangladesh

Air passengers should plan extra commute time to airport: DMP

4
Arrest warrant against Habib Group chairman, 4 others 
Crime

Arrest warrant against Habib Group chairman, 4 others 

5
File Photo: State Minister for Power, Energy and Mineral Resources Nasrul Hamid
Energy

All factories to remain closed once a week under rationing system

6
Ambassador of Switzerland to Bangladesh Nathalie Chuard. Photo: Courtesy
Bangladesh

Bangladesh never asked for particular info from Swiss bank: Ambassador

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net