The country’s industrial sector, whose growth dropped by 1.68 percentage points to 8.18 per cent in fiscal 2022-23, has been hit by a sharp decline in the value of the taka against the US dollar and lower investment, exports and import of raw materials. The sector’s growth was 9.86 per cent a year ago.
Bangladesh’s GDP is estimated to have grown at a slower pace of 6.03 per cent in this fiscal—down from 7.1 per cent in the last—with the industrial sector, whose growth dropped to 8.18 per cent in the fiscal, contributing the most.
The sector has been hit by a fall in the value of the taka and lower investment, exports and raw materials import.
The industrial sector constitutes about 36 per cent of the country’s GDP.
Between July and March, the opening and settlement of letters of credit for importing industrial raw materials dropped 31 per cent and 6.68 per cent respectively compared to the same period a year ago.
Shipments were up by 5.38 per cent year on year to $45.67 billion in the first 10 months of FY23. It had surged by 34.38 per cent to a record $52.08 in fiscal 2021-22, according to a report in a domestic newspaper.
The government has projected that the investment-to-GDP ratio would be 31.25 per cent in FY23, down from 32.05 per cent in FY22. If this ratio keeps rising, entrepreneurs may not invest further, an expert noted.
Fibre2Fashion News Desk (DS)
