Industrial production falls despite rising imports
Industrial production has slowed in the country, despite exceptional imports in recent months.
The general industry index stood at 489.73 in April, down 6% from 520.90 in March, according to the Bangladesh Bureau of Statistics (BBS).
Manufacturing output rose 4% year-on-year in April.
April was the third consecutive month to record a slowdown in industrial production after the score hit 566.19 in January, the highest in three years.
The downtrend came at a time when imports surged to fuel the rebounding economy from the slowdown in the Covid-19 pandemic.
Prices for goods and raw materials have surged on surging demand as global economies rebound amid the Russia-Ukraine conflict.
Bangladesh’s imports increased by 41% in the July-April period of the last fiscal year.
It fell to 36% at the end of the financial year, as importers imported $82.49 billion worth of goods, according to Bangladesh Bank data.
The industry accounted for 37% of Bangladesh’s gross domestic product in FY22, according to preliminary BBS estimates.
The national statistics agency collects monthly data on industrial production from 965 industries, public and private, in 22 sectors, in order to assess the evolution of industrial production.
Sectors include food processing, beverages, textiles and apparel, jute, leather, paper and printing, petroleum, chemicals and chemicals, pharmaceuticals, plastics, steel, cement, edible oil and soap and detergents.
Among the sector, the industrial production of 14 sectors decreased while it increased for eight sectors.
Production of jute and cotton textiles, pharmaceuticals, tea and fruit processing and preservation increased in April from the previous month.
In contrast, manufacturing of clothing, petroleum products, fertilizers, tiles, cement, paper and paper products, and salt fell.
Importers bought ready-to-wear related goods up 58.2% year-on-year in FY22, central bank data showed.
Imports of raw cotton increased by 39.3%, yarns by 115.3%, textiles and related articles by 51.6%, staple fibers by 50.9% and dyeing and tanning materials by 24%. .9%.
Imports of intermediate goods, which included clinker for the cement industry, oilseeds, chemicals and pharmaceuticals, increased by 63.6% in the last fiscal year.
Imports of capital goods, including capital goods, increased by 26.35% in FY22.