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Fiscal Constraints towards Achieving Sustainable Recovery from COVID-Induced Challenges in 2022

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  • CPD IRBD 2021 Team

Abstract

This report, prepared under the Centre for Policy Dialogue’s (CPD) flagship programme titled Independent Review of Bangladesh’s Development (IRBD), offers an analysis of the economy that started off on a normal course at the beginning of the fiscal year and then entered into an unforeseen terrain and uncharted waters soon after the first quarter. The trends of key macroeconomic correlates during the early months of FY2021–22 evince that many of these are in a recovery trajectory, led by export-oriented sectors. However, macroeconomic stability is not in a comfortable state anymore. The policy space for tackling prevailing and emerging challenges has become comparatively limited. In this backdrop, trends in recovery, emergent risks and the available policy space should receive due cognisance while designing and implementing policy responses. As the country navigates through a critical phase of the COVID-19 pandemic and seeks a trajectory of sustainable recovery, the report provides an assessment of the performance of the key sectors of the Bangladesh economy and traces the trends in critical macroeconomic correlates during the early months of FY2021–22. The report makes use of the latest available data and information from domestic and international sources. Insights from key informants are also taken into cognisance to strengthen the analyses further.

Suggested Citation

  • CPD IRBD 2021 Team, 2022. "Fiscal Constraints towards Achieving Sustainable Recovery from COVID-Induced Challenges in 2022," CPD Working Paper 143, Centre for Policy Dialogue (CPD).
    • Handle: RePEc:pdb:opaper:143
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    Keywords

    COVID-19; macroeconomy; FY2021–22; Bangladesh economy; IRBD;
    All these keywords.

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