Bangladesh Manufacturing Sector Rebounds from Slump

[Bilal9]

Economists and manufacturers say that this rise means that economic activity has started in full swing​

Women assemble can openers at a factory in CUMILLA EXPORT PROCESSING ZONE destined for export
Courtesy
Tribune Desk
Published: April 9, 2023 4:09 AM | Last updated: April 9, 2023 4:09 AM

The country's large-scale manufacturing sector grew 13.7% in December in a rebound from the global pandemic-led slump while upper-class food supplements, refined petroleum and tobacco topped the growth chart.

Latest data released by the Bangladesh Bureau of Statistics (BBS) showed a robust growth trend comparable to previous indicators.

Economists and manufactures, however, point at challenges stemming from inflation, high price of raw materials for dollar dearth and so.

The BBS data show that the country's economic activity remained more buoyant in the last month of 2022 over its corresponding period a year earlier.

This index had contracted more than 2% in the first quarter (July-September) of the current fiscal year FY23.

However, this time beverage industry grew steeply by 580%, manufacturing of coke and refined petroleum by nearly 200%, tobacco more than 45%, textiles by nearly 8%, RMG more than 17.4%, leather and related goods 9.4%, manufacture of chemicals and chemical products by 23.9%, manufacturing of furniture by more than 21% and printing and reproduction of recorded media by 25.6%.

Economists and manufacturers say that this rise means that economic activity has started in full swing.

But they expressed concern over higher inflation and higher prices of raw materials as challenging factors before the boom in industrial output.

Sources aired concern about many sectors' possible slowdown in coming months due to the prolonged war in Ukraine as apparel and other exports may falter.

The readymade garment sector or RMG, accounting for more than 80% of export share, grew over 17% in December.

In FY22, the manufacturing sector had nearly 23% share in the gross domestic product or GDP, and the large-scale manufacturing segment accounted for nearly 11%.

Small, medium and micro had nearly 8% contribution.

The cottage industry had around 4% share.