Dhaka: The recent rise in imports suggests that the economy is beginning to regain momentum, said a monthly macroeconomic insights.
According to Bangladesh Sangbad Sangstha, the Centre for Macroeconomic Analysis (CMEA) of the Policy Research Institute of Bangladesh (PRI), in partnership with the Department of Foreign Affairs and Trade (DFAT) of the Australian Government, hosted the August-September edition of its Monthly Macroeconomic Insights (MMI) today at PRI’s conference room.
The report highlights the importance of central bank independence for better inflation control. Despite some moderation, inflation remains above 8%, reducing citizens’ purchasing power as wage growth lags behind price increases. Encouragingly, deposit growth has reached double digits after 17 months, which can be seen as a policy dividend. Sustaining this trend for five consecutive years could help offset losses from non-performing loans (NPLs).
Dr. Monzur Hossain, Member (Secretary) of the General Economics Division (GED), Bangladesh Planning Commission, attended the session as the chief guest. He emphasized that investment depends on the overall economic ecosystem and cannot be revived overnight. He suggested that the tight monetary policy should be moderately relaxed to encourage investment growth.
Dr. Zaidi Sattar, Chairman of PRI, chaired the event, noting that US-Bangladesh trade has historically been driven by competitive advantage in labor-intensive industries. Dr. Ashikur Rahman, Principal Economist at PRI, delivered the keynote presentation, stressing the significance of central bank independence to protect financial assets from future risks.
The discussion also included insights from Dr. Bazlul Haque Khondker, Dr. M. Masrur Reaz, and Tanjima Mostafa, who examined the implications of global economic shifts and domestic investment trends for Bangladesh’s medium-term outlook. They highlighted the need for institutional reform, better risk management in the banking sector, and the importance of new greenfield investments for job creation.
Others present included Joshua Gacutan of the Australian High Commission and PARK Young Sik, Ambassador of the Republic of Korea to Bangladesh, both emphasizing the importance of central bank independence and tax reform for macroeconomic stability. Mr. Owais Perry from UNDP stressed the need for supply-side measures alongside monetary policy to control inflation in developing countries.
Dr. Khurshid Alam, Executive Director of PRI, concluded the session by noting that while economic stabilization is underway, true sustainability requires balancing growth with structural resilience. The rise in LC openings for capital machinery is an encouraging sign of renewed investor confidence in long-term prospects.