UNB, Dhaka :
The Unnayan Onneshan (UO) cautions that lower growth in agriculture, underperformance in medium and large scale manufacturing industries coupled with greater product and market concentration of export, and slow expansion of service sector may hinder the achievement of 7 percent growth target.
The independent multidisciplinary think tank gave the caution in its February issue of Bangladesh Economic Update 2016.
Calling for adoption of strategies particularly focusing on the expansion of productive capacity, the UO advocates prudent harmonisation of macroeconomic policies that will foster agricultural growth, bolster industry, and expand service sector by creating adequate employment opportunities in the economy.
Pointing to declined rate of growth in agriculture, the research organisation shows that rate of growth in agriculture declined to 3.04 percent in FY 2014-15 from 4.37 percent in FY 2013-14, representing 1.33 percentage points decrease.
Noting the fact that growth in agriculture sector has been sharply declining since FY 2009-10 when the rate stood at 6.15 percent. Since then, the rate of growth in the sector declined to 4.46 percent, 3.01 percent, and 2.46 percent in FY 2010-11, FY 2011-12, and FY 2012-13 respectively.
Referring to volatile trend in the growth of manufacturing industries, the UO demonstrates that since FY 2010-11, the average rate of growth in manufacturing sector was 1.44 percent. The rate of growth was 10.01 percent in FY 2010-11, 9.96 percent in FY 2011-12, 10.31 percent in FY 2012-13, 8.77 percent in FY 2013-14, and 10.32 percent in FY 2014-15.
Taking account of the declined rate of growth in large and medium scale manufacturing industries, the research organisation evinces that during the last four fiscal years the rate of growth in this sector did not reach the rate in FY 2010-11 when growth in large and medium scale manufacturing industries stood at 11.11 percent.
The rate of growth in the large and medium manufacturing sector became 10.76 percent in FY 2011-12, 10.65 percent in FY 2012-13, 9.32 percent in FY 2013-14, and 10.24 percent in FY 2014-15, finds the research organisation.
In view of the importance of electricity, gas and water supply for industrial growth, the think tank notices an upsetting trend in the growth of electricity, gas and water supply as sectoral growth in GDP. The rate of growth in the sector has been declining since FY 2010-11 except for an increase of 2.47 percentage points in FY 2014-15 compared to the previous fiscal year.
The rate of growth in the supply of electricity, gas and water at constant market prices stood at 13.36 percent in FY 2010-11, 10.58 percent in FY 2011-12, 8.99 percent in FY 2012-13, 4.54 percent in FY 2013-14, and 7.01 percent in the FY 2014-15, shows the UO.
The Unnayan Onneshan (UO) cautions that lower growth in agriculture, underperformance in medium and large scale manufacturing industries coupled with greater product and market concentration of export, and slow expansion of service sector may hinder the achievement of 7 percent growth target.
The independent multidisciplinary think tank gave the caution in its February issue of Bangladesh Economic Update 2016.
Calling for adoption of strategies particularly focusing on the expansion of productive capacity, the UO advocates prudent harmonisation of macroeconomic policies that will foster agricultural growth, bolster industry, and expand service sector by creating adequate employment opportunities in the economy.
Pointing to declined rate of growth in agriculture, the research organisation shows that rate of growth in agriculture declined to 3.04 percent in FY 2014-15 from 4.37 percent in FY 2013-14, representing 1.33 percentage points decrease.
Noting the fact that growth in agriculture sector has been sharply declining since FY 2009-10 when the rate stood at 6.15 percent. Since then, the rate of growth in the sector declined to 4.46 percent, 3.01 percent, and 2.46 percent in FY 2010-11, FY 2011-12, and FY 2012-13 respectively.
Referring to volatile trend in the growth of manufacturing industries, the UO demonstrates that since FY 2010-11, the average rate of growth in manufacturing sector was 1.44 percent. The rate of growth was 10.01 percent in FY 2010-11, 9.96 percent in FY 2011-12, 10.31 percent in FY 2012-13, 8.77 percent in FY 2013-14, and 10.32 percent in FY 2014-15.
Taking account of the declined rate of growth in large and medium scale manufacturing industries, the research organisation evinces that during the last four fiscal years the rate of growth in this sector did not reach the rate in FY 2010-11 when growth in large and medium scale manufacturing industries stood at 11.11 percent.
The rate of growth in the large and medium manufacturing sector became 10.76 percent in FY 2011-12, 10.65 percent in FY 2012-13, 9.32 percent in FY 2013-14, and 10.24 percent in FY 2014-15, finds the research organisation.
In view of the importance of electricity, gas and water supply for industrial growth, the think tank notices an upsetting trend in the growth of electricity, gas and water supply as sectoral growth in GDP. The rate of growth in the sector has been declining since FY 2010-11 except for an increase of 2.47 percentage points in FY 2014-15 compared to the previous fiscal year.
The rate of growth in the supply of electricity, gas and water at constant market prices stood at 13.36 percent in FY 2010-11, 10.58 percent in FY 2011-12, 8.99 percent in FY 2012-13, 4.54 percent in FY 2013-14, and 7.01 percent in the FY 2014-15, shows the UO.
