UNB, Dhaka :
The Unnayan Onneshan (UO), an independent multidisciplinary think-tank, has put emphasis on adoption of new strategies aimed at expanding country’s productive capacities that enhance utilization of available resources through efficient entrepreneurial capabilities and increased production linkages.
The think-tank came up with this suggestion in its monthly publication of the ‘Bangladesh Economic Update’ August 2016 that reveals negative growth in two major external sector indicators – export shipment and wage earner’s remittance – in the starting month of FY 2016-17 compared to that of FY 2015-16 coupled with low business confidence is likely to exert pressure on country’s external sector balance.
In addition, recent declining growth in inflow of foreign direct investment (FDI) along with lack of expansion of productive capacity particularly in the manufacturing sector may adversely impact the overall performance of the country’s external sector, fears the research organizations.
Increasing export concentration of readymade garments (RMG) (from 83.9 percent in January-March 2015 to 84.6 percent in the corresponding period of 2016) together with declining growth in export earnings from RMG during the last couple of months, non-diversification of export markets, and lack of export competitive products may pose challenge to the performance of external sector, comments the UO.
Taking account of recently observed minimal increase in opening of import letter of credits (LCs), the UO comments this implies the lack of entrepreneurship and productive capacity in the economy, which together with current challenges of unemployment and low private investment may cause the rate of growth in Gross Domestic Product (GDP) to decelerate.
Export earnings declined by 3.49 percent in July 2016 compared to the corresponding month of 2015. Total export shipment stood at $2534.31 million in July 2016 compared to $2625.93 million July 2015. However, total export declined by 29.46 percent in July 2016 compared to June 2016 when export earnings stood at $3592.97 million, finds the research organization.
Taking account of the category-wise breakdown of exports, the UO shows that two of the main export items – woven garments and knitwear – registered negative growth in the starting month of the current fiscal year. Woven garments and knitwear experienced negative growth of 4.36 percent and 4.45 percent respectively in July 2016 over July 2015.
Referring to insignificant increase in fresh opening of import LCs, the think tank demonstrates that fresh opening of import LCs slightly increased by 0.62 percent in FY 2015-16 and stood at $43335.33 million compared to $43068.76 million in FY 2014-15. However, opening of import LCs for capital machinery and industrial raw materials assumed negative growth of 18.19 percent and 13.50 percent respectively in July 2016 over July 2015.
The Unnayan Onneshan (UO), an independent multidisciplinary think-tank, has put emphasis on adoption of new strategies aimed at expanding country’s productive capacities that enhance utilization of available resources through efficient entrepreneurial capabilities and increased production linkages.
The think-tank came up with this suggestion in its monthly publication of the ‘Bangladesh Economic Update’ August 2016 that reveals negative growth in two major external sector indicators – export shipment and wage earner’s remittance – in the starting month of FY 2016-17 compared to that of FY 2015-16 coupled with low business confidence is likely to exert pressure on country’s external sector balance.
In addition, recent declining growth in inflow of foreign direct investment (FDI) along with lack of expansion of productive capacity particularly in the manufacturing sector may adversely impact the overall performance of the country’s external sector, fears the research organizations.
Increasing export concentration of readymade garments (RMG) (from 83.9 percent in January-March 2015 to 84.6 percent in the corresponding period of 2016) together with declining growth in export earnings from RMG during the last couple of months, non-diversification of export markets, and lack of export competitive products may pose challenge to the performance of external sector, comments the UO.
Taking account of recently observed minimal increase in opening of import letter of credits (LCs), the UO comments this implies the lack of entrepreneurship and productive capacity in the economy, which together with current challenges of unemployment and low private investment may cause the rate of growth in Gross Domestic Product (GDP) to decelerate.
Export earnings declined by 3.49 percent in July 2016 compared to the corresponding month of 2015. Total export shipment stood at $2534.31 million in July 2016 compared to $2625.93 million July 2015. However, total export declined by 29.46 percent in July 2016 compared to June 2016 when export earnings stood at $3592.97 million, finds the research organization.
Taking account of the category-wise breakdown of exports, the UO shows that two of the main export items – woven garments and knitwear – registered negative growth in the starting month of the current fiscal year. Woven garments and knitwear experienced negative growth of 4.36 percent and 4.45 percent respectively in July 2016 over July 2015.
Referring to insignificant increase in fresh opening of import LCs, the think tank demonstrates that fresh opening of import LCs slightly increased by 0.62 percent in FY 2015-16 and stood at $43335.33 million compared to $43068.76 million in FY 2014-15. However, opening of import LCs for capital machinery and industrial raw materials assumed negative growth of 18.19 percent and 13.50 percent respectively in July 2016 over July 2015.
