Staff reporter :
The latest statistics released by the Bangladesh Bureau of Statistics (BBS) reveal a significant downturn in the growth of the industrial and service sectors during the last quarter of October to December.
Conversely, the agricultural sector has witnessed a remarkable increase in its contribution to the Gross Domestic Product (GDP). This data sheds light on the economic dynamics of the country, indicating both challenges and opportunities.
BBS’s calculation of GDP growth, considering three primary sectors regionally, indicates a noticeable decline in the growth rates of the industrial and service sectors, resulting in an overall reduction in growth.
The regional GDP growth rate for the second quarter of the current fiscal year plummeted to 3.78%, a substantial decrease compared to the previous fiscal year’s second-quarter growth rate of over 7% and the 9.30% growth rate in the fiscal year 2021–22.
This setback in growth is not only evident in comparison to the last two fiscal years but also in contrast to the first quarter of the current fiscal year, where GDP growth was above 6%. However, in the second quarter, it dwindled to nearly 4%.
The industrial sector experienced a significant decline in growth, with GDP growth plummeting to 3.24% in the October–December quarter of the current fiscal year.
This is in stark contrast to the 10% growth witnessed during the same period in the previous fiscal year and the approximately 14% growth recorded in the fiscal year 2021–22, making it the lowest growth quarter in the industrial sector in the last three fiscal years.
Conversely, the agricultural sector has showcased robust growth, recording a growth rate of 4.65% in the second quarter of the current fiscal year.
This marks a notable increase compared to the growth rates of 4.22% and 2.20% in the same period of the previous two fiscal years, respectively, positioning it as the sector with the highest growth in the last three fiscal years.
Despite the agricultural sector’s commendable performance, the service sector, akin to the industrial sector, has witnessed a significant decline in growth during the October–December quarter of the current fiscal year.
With a growth rate of 3.06% in this period, the service sector’s growth is less than half of what it was during the same period in the previous fiscal year, which was at 6.62%.
Khandaker Golam Moazzem, the research director at the Center for Policy Dialogue (CPD), attributes the decline in industrial growth to crises in the glass and dollar markets, alongside a decrease in demand for high-value goods.
Additionally, high inflation has contributed to the downturn in service sector growth, as increased expenses across various service sectors have deterred consumer spending.
Despite the economic challenges, the agricultural sector has flourished, experiencing increased internal production due to reduced imports and rising domestic prices.
The government’s initiatives to support agricultural production have further bolstered this growth.
Moazzem emphasises that, amidst the economic crisis, the government’s effective supply of essential resources to the agricultural sector has ensured its resilience.
While the industrial and service sectors grapple with challenges, the agricultural sector’s growth bodes well for the economy, offering stability and security in terms of food production.
