Some key economic indicators remain less promising: MCCI

Though exports and remittances drove the economy in the January-March quarter, some of the key economic indicators appeared as less promising than projected earlier, said the Metropolitan Chamber of Commerce and Industry (MCCI).

The country’s oldest trade organization came up with the observation in its quarterly economic review released on Wednesday.

“The fiscal framework continues to be weak in view of poor achievements, more specifically, both in terms of revenue mobilisation and public expenditure,” MCCI said.

The chamber also showed its concern about the unemployment situation and low investment.

It said a significant increase in public and private investment is necessary to maintain competitiveness and generate further growth.

The MCCI said the government’s stimulus packages have provided much-needed support to business at various levels, and the vaccination campaign that began earlier this year partially addressed the fear of the pandemic.

“As a result, the lockdown was lifted, economic activities started recovering to the pre-pandemic level and health emergency alerts were lowered during the quarter,” it mentioned.

When the economy was recovering from the fallout of the Covid-19 pandemic in the reported quarter, the second wave of the virus forced the government to impose a fresh lockdown that brought uncertainty for the economy, it said.