Of late, a favourable wind is blowing in the economy of the country as the export earnings and remittances have registered record growth.The economy has started flourishing at the outset of the New Year despite the fear of global crisis and recession.
Export earnings, the main sector of foreign exchange earnings, witnessed a record growth. Last November, the export sector achieved the milestone to cross $5 billion earnings for the first time to stand at $5.09 billion in a single month.
That record was broken the following month. The country also witnessed a record in export earnings in December as well amounting to $5.37 billion, up more than 9 percent in the same period of the previous year.
At the same time, the remittances sent by expatriate Bangladeshis have also turned around.
The remittances increased by 4.23 percent to stand at $1.70 billion in December 2022.
Remittance witnessed a rising trend and crossed $10 billion during the July-December period after its decline for two consecutive months.
According to Bangladesh Bank data, in the first six months of the current fiscal year 2022-23, expatriates sent about $10.42 billion.
After two consecutive months of heavy decline, the remittance returned to a positive trend last November and it continued in December, the month of victory.
Last November, expatriates sent $1594.70 million. An average of $53.10 million came every day. In September and October $49.20 million and $51.30 million came daily.
On the other hand, 1.15 million people have gone to different countries for work in 2022, surpassing all previous records.
If this large number of expatriates start sending remittances, the country's foreign exchange crisis is likely to disappear.
Meanwhile, inflation has been declining for the last four months. In December, the wages of workers in various sectors increased by 7.3 percent, which is more than the previous two months of October and November. This will increase the purchasing power of the working class.
On the other hand, the private sector credit growth increased to 13.97 percent in November in 2022 due to the establishment of industries in new economic zones, according to Bangladesh Bank data.
Industrialization will create new employment, which will help raise the purchasing power of people.
However, despite so many restrictions, the cost of imports remains at an alarming level.
Market analysts said that if imports can be brought under control, the economy will be relieved of pressure and return to the growth trend.
Finance Minister AHM Mustafa Kamal has said recently the country's economy will improve in the New Year 2023.
He hopes that in the New Year, commodity prices will decrease, export and remittance income will increase.
The growth will be higher than the new target of GDP-growth set in the revised budget for the current fiscal year, he said, adding that inflation has increased in the country due to the global crisis. As the prices of goods fall in the outside world, inflation will soon come down in the country as well, he mentioned.
The finance minister said that in future, we will take many initiatives to revitalize the economy in the upcoming budget for overcoming the crisis.
We will put emphasis in the upcoming budget on price control, increasing beneficiaries under social security, poverty alleviation and new employment- oriented schemes, he said.
“We will be able to face the ongoing crisis with united efforts. As a result, the country's economy will improve in future,” he added.