The main challenge of the new government will be to restore the momentum of the economy, by controlling inflation. According to economists and businessmen, the new government has to be strict in at least seven areas, including preventing money laundering, loan irregularities, to face the challenges. Even if it goes against the powerful, the right decision must be implemented.
When Awami League took charge of the country for the fourth time in 2018, the gross domestic product GDP growth was around eight percent. Which came down to six percent last year. During this time the cost of living rose and inflation nearly doubled. Decreasing foreign exchange reserves have lost momentum. The increase in revenue is also not significant. The global economic situation was not favorable either. However, some indicators including per capita income and poverty have improved during this period. In such context, Awami League is in power for the fifth time.
Those concerned say that to recover the lost momentum of the economy, prevention of money laundering, stop irregularities in bank loans, improvement in foreign debt management, irregularities in the implementation of development projects and tax evasion must be stopped. Emphasis should be placed on inflation control and market management.
Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) President Mahbubul Alam said that the government should take necessary steps to create a business-friendly environment. Business environment should be developed to increase investment.
Mostafizur Rahman, Honorary Fellow of the Center for Policy Dialogue (CPD), said that zero tolerance for irregularities and cost-effectiveness are not only necessary to increase business. Must be implemented.
Although the economy has slowed down, infrastructure development has been remarkable in the last five years. Many government policy makers feel that steps should be taken to rebalance the macro economy.
Former Minister of State for Planning Shamsul Alam said that since this government has gained a lot of experience in managing the country, economic system and politics. Therefore, it will be easy for the government to recover the economy.
In the coming days, various challenges await the economy, including the transition to developing countries. According to those concerned, if the macroeconomics is strong, it will be easier to face the challenges.