The Russia-Ukraine crisis has had an impact on Bangladesh’s economy, but it does not mean that the country’s macroeconomic stability will be at stake, said Finance Minister AHM Mustafa Kamal. The Finance Minister made the remarks in response to a question from Dhaka-10 MP Safiul Islam in the national parliament on Monday (28 March). Speaker Shirin Sharmin Chowdhury presided over the question and answer session.
Finance Minister Mustafa Kamal said that the Russia-Ukraine military crisis is going to hit Bangladesh’s economy in the short and medium-term. What the outcome will be in the long run will depend on the length of the war and the resulting crisis. However, it seems that even if this crisis affects the economy of Bangladesh, it will not put the country’s macroeconomic stability at great risk.
The Finance Minister said that Russia’s military campaign in Ukraine, as well as Western economic sanctions on Russia and its ally Belarus, has had a negative impact on the global economy. The crisis has destabilized the fuel oil and natural gas markets.
The Finance Minister said that the impact of the ongoing military crisis and sanctions could push up the prices of natural gas, crude oil, fertilisers, wheat, nickel, aluminium, and important raw materials for electrical goods, as well as related commodities. This price increase will affect global inflation. The rise in oil and gas prices has led to an increase in the cost of food, consumer goods, industrial raw materials, and international transport. Due to this crisis, there may be complications in paying for the export of garments made by Bangladesh to Russia, the Minister said.
