Industrial sector's share in GDP slightly up in FY11
FE Report
The share of the industrial sector in the country's gross domestic product (GDP) has increased by 0.40 percentage point in the outgoing fiscal and that of agriculture and service sectors has slightly declined, according to the latest official survey report.
The Bangladesh Economic Survey 2011 estimated the share of the industrial sector at constant price to the country's GDP at 30.33 per cent in fiscal 2010-11 against 29.93 per cent in the previous fiscal.
The GDP represents the aggregate value of goods and services produced in an economy. The contribution of the agriculture sector to the economy showed a decline by 0.34 percentage points in the outgoing fiscal from 20.29 per cent in the previous fiscal, the survey said.
The agriculture sector registered its rate of growth at 4.96 per cent in the outgoing fiscal compared to that of 5.24 per cent in fiscal 2009-10, according to the survey.
The growth rate of the service sector in FY2010 rose to 6.63 per cent in fiscal 2010-11 from 6.47 per cent in fiscal 2009-10 and its share in the GDP stood at a slightly lower level -- by 0.06 percentage points -- at 49.72 per cent in the outgoing fiscal from 49.78 per cent in the previous fiscal.
In the outgoing FY2011, the industrial sector's estimated growth rate at constant price was up -- at 8.16 per cent from that of 6.49 per cent in FY2010.
The growth performance of manufacturing sub-sector (included in broad industrial sector category), according to the latest survey, was still higher -- at the 18.41 per cent in the outgoing FY2011 against 17.94 per cent in the previous fiscal.
Reviewing the overall performance of the national economy in the outgoing fiscal, a senior finance ministry official said the government has taken a cautious approach to maintain an upward economic growth rate in the next FY2012 by weathering the impact of the global economic situation on the economy.
Several fiscal measures will be undertaken through the proposed national budget to attract more investment and to help boost the country's economic growth rate from 6.6 per cent in fiscal '11 to 7.0 per cent in fiscal '12, he said.
Economic analyst Zaid Bakht said the recovery of the global economy has given an impetus for Bangladesh's industrial sector, facilitating its higher growth in the outgoing fiscal.
"Now the government needs to upgrade the infrastructural facilities and also improve the situation in the energy sector. If these are done properly, the economy is likely to expand further in the next fiscal also," he told the FE.
Mr. Bakht, also a senior researcher of the Bangladesh Institute of Development Studies (BIDS), said the contribution of the agriculture sector, in real terms, to the economy has been on a gradual decline while the service and industrial sectors have been doing well.
"This is a good sign for an economy. When the industrial and service sectors of an economy grow, its GDP expands at a higher rate," he said.
However, former finance adviser to the past caretaker government, Mirza Azizul Islam said the official estimate about the GDP growth rate at 6.7 per cent in the outgoing fiscal has already raised questions as this estimate does not match with the macro-economic situation including the investment scenario.
"Arithmetically, the growth projection and the sectoral contribution to the economy may be correct. But there is a further scope to review the statistics to assess the actual situation," he said.
As the falling remittance flow and lower public expenditure have affected consumption, it is difficult to maintain that the economy has been doing well, he maintained.
"Lower than expected private investment, existing pressure on exchange rate, depreciation of taka against US dollar, falling foreign aid inflow and higher lending rate do not substantiate the estimated growth rate of the industrial and service sectors as well as of the overall GDP in fiscal 2010-11," he added.
FE Report
The share of the industrial sector in the country's gross domestic product (GDP) has increased by 0.40 percentage point in the outgoing fiscal and that of agriculture and service sectors has slightly declined, according to the latest official survey report.
The Bangladesh Economic Survey 2011 estimated the share of the industrial sector at constant price to the country's GDP at 30.33 per cent in fiscal 2010-11 against 29.93 per cent in the previous fiscal.
The GDP represents the aggregate value of goods and services produced in an economy. The contribution of the agriculture sector to the economy showed a decline by 0.34 percentage points in the outgoing fiscal from 20.29 per cent in the previous fiscal, the survey said.
The agriculture sector registered its rate of growth at 4.96 per cent in the outgoing fiscal compared to that of 5.24 per cent in fiscal 2009-10, according to the survey.
The growth rate of the service sector in FY2010 rose to 6.63 per cent in fiscal 2010-11 from 6.47 per cent in fiscal 2009-10 and its share in the GDP stood at a slightly lower level -- by 0.06 percentage points -- at 49.72 per cent in the outgoing fiscal from 49.78 per cent in the previous fiscal.
In the outgoing FY2011, the industrial sector's estimated growth rate at constant price was up -- at 8.16 per cent from that of 6.49 per cent in FY2010.
The growth performance of manufacturing sub-sector (included in broad industrial sector category), according to the latest survey, was still higher -- at the 18.41 per cent in the outgoing FY2011 against 17.94 per cent in the previous fiscal.
Reviewing the overall performance of the national economy in the outgoing fiscal, a senior finance ministry official said the government has taken a cautious approach to maintain an upward economic growth rate in the next FY2012 by weathering the impact of the global economic situation on the economy.
Several fiscal measures will be undertaken through the proposed national budget to attract more investment and to help boost the country's economic growth rate from 6.6 per cent in fiscal '11 to 7.0 per cent in fiscal '12, he said.
Economic analyst Zaid Bakht said the recovery of the global economy has given an impetus for Bangladesh's industrial sector, facilitating its higher growth in the outgoing fiscal.
"Now the government needs to upgrade the infrastructural facilities and also improve the situation in the energy sector. If these are done properly, the economy is likely to expand further in the next fiscal also," he told the FE.
Mr. Bakht, also a senior researcher of the Bangladesh Institute of Development Studies (BIDS), said the contribution of the agriculture sector, in real terms, to the economy has been on a gradual decline while the service and industrial sectors have been doing well.
"This is a good sign for an economy. When the industrial and service sectors of an economy grow, its GDP expands at a higher rate," he said.
However, former finance adviser to the past caretaker government, Mirza Azizul Islam said the official estimate about the GDP growth rate at 6.7 per cent in the outgoing fiscal has already raised questions as this estimate does not match with the macro-economic situation including the investment scenario.
"Arithmetically, the growth projection and the sectoral contribution to the economy may be correct. But there is a further scope to review the statistics to assess the actual situation," he said.
As the falling remittance flow and lower public expenditure have affected consumption, it is difficult to maintain that the economy has been doing well, he maintained.
"Lower than expected private investment, existing pressure on exchange rate, depreciation of taka against US dollar, falling foreign aid inflow and higher lending rate do not substantiate the estimated growth rate of the industrial and service sectors as well as of the overall GDP in fiscal 2010-11," he added.