Economy
Private Investment Dips Amid Industrial Slowdown: BBS
Bangladesh witnessed a decline in private investment as a share of its Gross Domestic Product (GDP) in the last fiscal year, signaling a slowdown in industrial growth, according to the Bangladesh Bureau of Statistics (BBS).
Provisional figures reveal that private investment dropped to 23.51% of GDP in the fiscal year 2023-24 (FY24), a decline from 24.18% in FY23.
Additionally, private consumption contracted by 1.8 percentage points in FY24, largely due to escalating consumer prices and an average annual inflation rate of 10.59% during the third quarter.
These developments have had a tangible impact on the industrial sector, where growth fell from 8.37% in FY23 to 6.66% in FY24, based on provisional data for the first nine months ending in March.
Moreover, the final GDP growth rate for FY23 was revised downward to 5.78%, from the previous estimate of 6.03%. The BBS has provided a provisional estimate for GDP growth in FY24, placing it at 5.82%.
Among the three key economic sectors, services led with a 51.04% share of the country’s GDP, followed by industry at 37.95%, and agriculture at 11.02%.
The service sector witnessed a 0.43% growth uptick in FY24, while the industry sector contracted by 1.71% and agriculture by 0.16% year-on-year.
The industrial sector’s weaker performance is attributed to significant downturns in its three major sub-sectors—large, small, medium, and cottage industries—dampening overall manufacturing, a critical private-sector job provider.
Growth in large manufacturing industries was estimated at 4.65% in FY24, down from 8.39% in FY23. Meanwhile, growth in medium, small, and micro enterprises declined to 5.07%, compared to 9.03% in the previous fiscal year. The cottage industries’ growth rate fell to 6.70%, from 9.97% in FY23.
Value addition across all industrial segments—large, small, medium, and cottage industries—has been on a decline over the past year.
However, the BBS pointed out relatively stronger growth in cottage industries, which contribute about 20% of the total value added in the manufacturing sector. These industries primarily rely on indigenous raw materials, making them less vulnerable to external economic shocks. The data indicated increased production in cottage industries, particularly in food, beverages, tobacco, leather goods, wood products, glass, iron products, vehicle parts, and iron furniture.
Sectoral distribution data show a gradual reduction in agriculture’s GDP share, contrasted by growth in the industry and service sectors.
Despite stable physical output in the agriculture sector, especially in crops and horticulture, its overall contribution to GDP has been diminishing, while the industry and service sectors’ shares have been rising.
The tax-GDP ratio saw an improvement, reaching 8.91% in FY24, up from 7.30% in the previous year.
The budget deficit edged up slightly to 5.11% of GDP in FY24, compared to 4.99% in FY23.
Exports and imports, as a percentage of GDP, fell by more than two percentage points to 28.89% in FY24.
Overall investment, encompassing both public and private sectors, increased marginally by 0.03% in FY24, while domestic savings rose by 1.85% and national savings by 1.91%.
Provisional estimates by the BBS placed per capita GDP at Tk 294,191 ($2,675) and per capita gross national income (GNI) at Tk 306,144 ($2,784) for FY24.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
