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The new government faces economic challenges

by Afonso
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According to stakeholders, 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 8 percent. Which came down to 6 percent last year. During this time the cost of living rose and inflation nearly doubled. Decreasing foreign exchange reserves. 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 a 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. Business environment should be developed to increase investment.

Mahbubul Alam, president of FBCCI, an apex organization of traders, said, ‘We will appeal to the new government that they will be a business-friendly government. Identify the problems of traders and remove them as much as possible.

Mostafizur Rahman, Honorable Fellow of CPD said, ‘Many times I hear that zero tolerance must be shown, we must establish good governance, we must do it cost-effectively. Only if we implement these words, we can overcome these problems. But ultimately it is a political decision.’

Although the economy has slowed down, infrastructure development in the last five years has been remarkable. Many government policy makers feel that steps should be taken to rebalance the macro economy.

Former Minister of State for Planning Shamsul Alam said, ‘The government has gained enough experience in economic system, state management, politics. The challenges of the coming days will be easily overcome. Hopefully the economy will go back to full swing, full swing.’

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.


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