B'desh economy shows signs of recovery amid Covid-19

Source :IANS
Author :IANS
Last Updated: Mon, Oct 5th, 2020, 16:12:01hrs
Bangladesh Coronavirus

Dhaka: Bangladesh's economy was showing signs of recovery amid the ongoing coronavirus pandemic as inflow of remittances continue to increase, while foreign exchange reserves were also on course to surpass the $40 billion milestone, a media report said.

The bdnews24 report published late Sunday further said that while household incomes have dropped, the sales of savings certificates, on the other hand, have increased.

Export earnings were also on the rise, with Bangladesh currently posting a large surplus in its balance of payments. The flow of credit to the private sector is growing as well, the report added.

"Bangladesh's economy has made a turnaround. All indicators are positive now," Finance Minister AHM Mustafa Kamal told bdnews24.

"I believe our GDP growth will be between 8.1 per cent and 7.2 per cent this time. And even that doesn't happen, it still won't a bad thing at all."

Meanwhile, the DSEX, the main index of the Dhaka Stock Exchange, dropped below 4,000 points in June in the midst of the epidemic.

It has since gained momentum in the following months, closing at 5,000 points on Oct 1.

Asked what sparked the stock market back into life, Dhaka Stock Exchange's Director Shakil Rizvi told bdnews24: "To be honest, even we are a bit surprised. We did not expect such a positive trend in the capital market amid the pandemic.

"I believe two things are at play here. First, when the market slumped, share prices were dragged down with it. It was a good time to invest in stocks. Investors have taken that opportunity. Secondly, the regulators have become more active and this has redressed the disconnect between the different authorities. The market is reaping the benefits from the lower interest rates."