Purchasing power squeezed by inflationary pressures. People are forced to reduce consumption to cope with the pressure of increased expenses. Due to the dollar crisis and currency devaluation, imports are decreasing in the industrial sector. The total consumption expenditure of the private sector is falling. According to data from CEIC data, a global database consisting of data on the economy of developed and developing countries, private sector consumption spending in the country is going to decrease by more than 13 billion dollars in the current year 2023.
This upward trend in consumption expenditure of the private sector has been interrupted this year. According to the data of the database, the total consumption expenditure of the private sector of the country will stand at 304.53 billion dollars in 2023. Accordingly, compared to 2022, consumption expenditure of the private sector is going to decrease by 13.36 billion dollars.
Bangladeshi taka has been depreciating against the dollar continuously since April last year. In April 2022, the rate was 86.45 taka per dollar. The exchange rate of the currency was 110.50 BDT in the last interbank transaction yesterday. However, it is more in the informal (curb) market. Economists are now looking at things like the devaluation of the currency and the reduction in consumer purchasing power due to inflationary pressure as the major reasons for the reduction in consumption expenditure of the private sector.
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