Dhaka, Bangladesh (BBN)– The Unnayan Onneshan (UO) has predicted a slowdown in the growth of manufacturing sector in the coming years if the business-as-usual situation lingers.
The non-government research organisation has also estimated that growth of the manufacturing sector might further decelerate to 9.22 percent and 9.11 percent in the fiscal year (FY) 2013-14 and FY `15 respectively.
The growth in the manufacturing sector was 9.34 per cent in the FY `13. It was 9.37 per cent and 9.45 per cent in FY `12 and FY `11 respectively.
The share of industry in the gross domestic product (GDP) increased by 2.73 percentage point in FY `13 than that of the previous fiscal year and stood at 31.98 per cent.
“If the current trend continues, the share of industry in GDP in the FY `14 and the FY `15 might stand at 32.28 per cent and 32.57 per cent respectively,” the research organisation said in its latest monthly update titled ‘Industrial sector sluggishness and catching up’, released on Saturday.
“Generally, the maximum share of the GDP in developed countries comes from the service sector, while the emerging countries have a high contribution of industry and relatively largest and lowest share of service and agriculture sectors respectively,” it noted.
It also said if emphasis can be given to rapid transformation of the industrial sector, the goal of graduating into a middle income country might be attained.
“Harmonisation between fiscal and monetary policies, reduction in the savings-investment gap, diversification of the market and products, increased investment in infrastructure and technological catching up can boost the industrial sector of the country,” the research organisation suggested.
BBN/SSR/AD-13Oct13-11:59 am (BST)