Bangladesh’s imports of capital machinery, industrial raw materials, and intermediate goods declined for the second consecutive fiscal year, indicating weak private investment and poor job creation prospects.
In FY24, which ended in June, imports of capital machinery dropped 24% year-on-year to $2.66 billion, following a 34% decrease the previous year. This decline, driven by persistent US dollar shortages and rising import costs due to currency devaluation, signals reduced investment in the industrial sector, which could negatively impact employment. Industrial raw material imports also fell by 16% due to declining exports and domestic demand amid high inflation.
Experts warn that this downturn in investment could lead to a prolonged reduction in the industrial sector’s contribution to GDP. Additionally, shrinking forex reserves and cautious foreign investment are exacerbating the economic challenges, particularly for small and medium enterprises.
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