Pvt investment to GDP ratio falls again

Business Report :
According to preliminary statistics from the Bangladesh Bureau of Statistics, the private investment-to-GDP ratio fell by 0.88 percentage points to 23.64% in FY23.
Based on their data, this is the ratio’s second drop in three years. It experienced a slight decline in 2020-21 as a result of the effects of Covid-19.
In line with the economy’s recovery from the healthcare crisis, the ratio rose 0.82% to 24.52% in 2021-22.

The dollar scarcity has lasted nearly a year since earnings from remittances and exporters did not match an increase in import costs, causing reserves to erode.
As shown in Bangladesh Bank data, the opening of letters of credit for capital machinery fell 56.91% and settlement dropped 16.83% in the July-April period of FY23 compared to the same period the previous fiscal year.

Economists argue that the reduction in private investment is primarily related to decreased company confidence.
The dollar’s exchange rate surged last year as a result of the Russia-Ukraine conflict.