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The interim government has done a creditable job stabilizing the economy and fixing the mess it inherited. But the incoming government is still going to have its work cut out for it, and we will need very safe hands to ensure that Bangladesh gets back on track.
Orthodox macroeconomic policies are having desired effects, with the exchange rate and the central bank’s stock of reserves stabilizing even as import restrictions have been lifted. Higher interest rates have had a dampening effect on economic activities, but very strong remittances have supported household consumption, while exports and public demand also contributed to growth. The economic recovery had started by summer, though pockets of weakness remain, particularly in private investment consumption.
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