Inflation, taka devaluation slow manufacturing growth
Business Desk :
Multiple setbacks, including fall in demand, inflation, import restrictions and others caused significant fall in the growth of Bangladesh’s manufacturing sector.
However, Bangladesh Bureau of Statistics (BBS)’s provisional data recently revealed that the manufacturing sector was anticipated to expand at a rate of 9.23% in the current FY23.
In FY22, the actual growth of the sector as a component of the gross domestic product (GDP) at constant price was 11.41%, rebounding from the Covid-19 pandemic and the Ukraine war.
Out of the manufacturing growth in the GDP, the large-industry segment expanded 8.46% in the current FY2022-23. It was an impressive 15.68 per cent growth in the past fiscal.
Although the small, medium and micro industries (SMMIs) segment has shown an impressive recovery on its higher growth trajectory in the current FY compared to the last fiscal, the cottage industries showed a grim picture with its growth plummeting, the BBS data also found.
The BBS also estimated the growth rate of the cottage industries down at 10.69% in the current FY23. Its expansion rate in the past FY was 11.12%.
It recently unveiled the provisional figure of Bangladesh’s GDP expansion at a modest 6.03% as the expansion rates of three major sectors – agriculture, industry, and services – nosedived.
According to the provisional data, its growth rate in agriculture was estimated to be 2.61% in the current FY23.
It recorded 3.05% in the last fiscal year.
Industrial and services sectors are estimated to grow 8.18% and 5.84% in the current FY.
The growth of the both sectors were 9.86% and 6.26% respectively in the past year.
In FY20, the large industries had expanded at only 0.41%, which ballooned to 10.61% in the following FY21 and to 15.68% in the last FY, the BBS data showed.
Similarly the cottage industry also expanded only 3.61% in FY20, which recovered to 10.27% in the following FY21 and 11.12% rate in the last FY22.
But in the current FY23, its growth rate has dropped to 10.69%, the BBS’s provisional data showed.
