Bangladesh economy stays resilient on RMG exports, remittances

Bangladesh’s economy is resilient, backed by robust remittance inflows, steady export growth led by the readymade garment (RMG) sector, improving banking sector liquidity and positive investment indicators, according to a report by the general economics division of the Bangladesh Planning Commission.The country’s external sector remained strong as remittance inflows reached $3.43 billion in May this year, offering a major boost to foreign exchange earnings and helping maintain foreign exchange reserves at a comfortable level of around $34.55 billion, the report said.

Bangladesh’s economy is resilient, backed by robust remittance inflows, steady export growth led by the RMG sector, improving banking sector liquidity and positive investment indicators, according to a report by the Bangladesh Planning Commission.
The country’s banking sector saw strengthening liquidity and the government’s reduced dependence on bank borrowing has eased pressure on the financial sector.

RMG exports rose to $3.59 billion in May. Non-RMG exports also showed encouraging signs of diversification, reflecting improving demand in major export destinations and broadening the country’s export base,.

The banking sector witnessed strengthening liquidity as deposits recorded nearly 12-per cent year-on-year (YoY) growth in the month, indicating continued public confidence in the financial system.

The government’s reduced dependence on bank borrowing has eased pressure on the financial sector and is expected to create more room for private sector credit expansion, supporting investment and economic activities, the report noted.

Strong imports of capital machinery also pointed to continued industrial expansion and improving business confidence.

Fibre2Fashion News Desk (DS)