Agri-share in economy falls in FY2009-'10
Saturday, 12 June 2010
FHM Humayan Kabir
Contribution of the agriculture sector to the country's economy witnessed a drop in the outgoing 2009-10 fiscal, while that of services and industrial sectors swelled slightly, said the government's annual economic survey.
According to Bangladesh Economic Survey 2010, share of the agriculture sector at constant price to the country's gross domestic product (GDP) went downward to 20.16 per cent in this fiscal from 20.48 per cent in the previous FY2009.
The report said participation of the service sector in the economy has swelled by 0.24 percentage points in the outgoing fiscal from 49.66 per cent in the previous FY2008-2009 and the industry sector by 0.09 percentage points from previous year's 29.86 per cent.
Although the growth of the agriculture sector was impressive at 4.39 per cent in the outgoing fiscal, its share in the GDP has decreased to 20.16 per cent from 20.48 per cent in the previous year, the annual survey report said.
The share of the service sector in the current fiscal in the economy has augmented to 49.90 per cent, 0.24 percentage points up from previous FY2009, as its growth has increased to 6.59 per cent.
Besides, the participation of the industrial sector in the economy has also increased slightly to 29.95 per cent in the current FY2010 from 29.86 per cent in FY2009 despite a plunge of its growth, said the survey report.
In the outgoing financial year of 2010, the industrial sector has maintained a 6.42 per cent growth, declined by 0.04 percentage points from FY2009.
The economic contribution to the manufacturing sub-sector of the industrial sector has declined by 0.03 percentage points in the outgoing FY2010 from the earlier FY2009, the economic survey report said.
A senior finance ministry official said the government has taken cautious approach to maintain at least a steady economic growth in the next financial year of 2010-11 by weathering the impact of global financial plunge on the economy.
There are several fiscal measures which have been included in the proposed national budget to attract more investments, particularly the foreign direct investment, to boost the country's economic growth to the expected 6.7 per cent in the next FY2011, he said.
Former finance adviser Mirza Azizul Islam said, "I have doubt about achieving 6.0 per cent GDP growth in the current fiscal and 6.7 per cent in the next fiscal with the falling contribution of the manufacturing sector to the GDP."
"As the export growth has dropped and the import of capital machinery and raw materials has declined significantly, it will be very tough to achieve the expected growths," he said.
Mr Islam said growth in agriculture sector in the outgoing fiscal is impressive, but if the government could not ensure expansion of the manufacturing and modern service sub-sectors the economy would not boost up at the expected level.
Prof Muzaffar Ahmed said drop in the agriculture sector's share in the economy does not mean that the overall economy would not grow. "If the government can ensure adequate inputs and smooth growth of the manufacturing and business sub-sectors the economy will expand properly," he added.
Adequate energy supply and secure business environment is imperative to expanding the GDP at expected level, Prof Ahmed said.
Contribution of the agriculture sector to the country's economy witnessed a drop in the outgoing 2009-10 fiscal, while that of services and industrial sectors swelled slightly, said the government's annual economic survey.
According to Bangladesh Economic Survey 2010, share of the agriculture sector at constant price to the country's gross domestic product (GDP) went downward to 20.16 per cent in this fiscal from 20.48 per cent in the previous FY2009.
The report said participation of the service sector in the economy has swelled by 0.24 percentage points in the outgoing fiscal from 49.66 per cent in the previous FY2008-2009 and the industry sector by 0.09 percentage points from previous year's 29.86 per cent.
Although the growth of the agriculture sector was impressive at 4.39 per cent in the outgoing fiscal, its share in the GDP has decreased to 20.16 per cent from 20.48 per cent in the previous year, the annual survey report said.
The share of the service sector in the current fiscal in the economy has augmented to 49.90 per cent, 0.24 percentage points up from previous FY2009, as its growth has increased to 6.59 per cent.
Besides, the participation of the industrial sector in the economy has also increased slightly to 29.95 per cent in the current FY2010 from 29.86 per cent in FY2009 despite a plunge of its growth, said the survey report.
In the outgoing financial year of 2010, the industrial sector has maintained a 6.42 per cent growth, declined by 0.04 percentage points from FY2009.
The economic contribution to the manufacturing sub-sector of the industrial sector has declined by 0.03 percentage points in the outgoing FY2010 from the earlier FY2009, the economic survey report said.
A senior finance ministry official said the government has taken cautious approach to maintain at least a steady economic growth in the next financial year of 2010-11 by weathering the impact of global financial plunge on the economy.
There are several fiscal measures which have been included in the proposed national budget to attract more investments, particularly the foreign direct investment, to boost the country's economic growth to the expected 6.7 per cent in the next FY2011, he said.
Former finance adviser Mirza Azizul Islam said, "I have doubt about achieving 6.0 per cent GDP growth in the current fiscal and 6.7 per cent in the next fiscal with the falling contribution of the manufacturing sector to the GDP."
"As the export growth has dropped and the import of capital machinery and raw materials has declined significantly, it will be very tough to achieve the expected growths," he said.
Mr Islam said growth in agriculture sector in the outgoing fiscal is impressive, but if the government could not ensure expansion of the manufacturing and modern service sub-sectors the economy would not boost up at the expected level.
Prof Muzaffar Ahmed said drop in the agriculture sector's share in the economy does not mean that the overall economy would not grow. "If the government can ensure adequate inputs and smooth growth of the manufacturing and business sub-sectors the economy will expand properly," he added.
Adequate energy supply and secure business environment is imperative to expanding the GDP at expected level, Prof Ahmed said.