The investment scenario in the country remained depressed during the second quarter (October-December) of the current fiscal year, but the situation is improving steadily this quarter, said the Metropolitan Chamber of Commerce and Industries in its quarterly economic review on Monday.
‘[But] the acceleration of growth would depend on a speedier implementation of the government’s annual development programme but most importantly on increased investment in the private sector,’ said the report.
In the Review of Economic Situation in Bangladesh October-December 2010 (Q2 of FY 11), the trade body said the actual increase in investment would depend on the effectiveness of government to pull out the obstacles to investment growth and to resolve the power and electricity crisis on an urgent basis.
On the current stock market collapse, it has suggested that state-owned enterprises and big companies should enter into stock market immediately for sustaining the development of, and consolidating the stock market, strengthening supply side of stocks in the market.
The report said, ‘Despite a slight easing of price pressure, the inflation rate remains high, and that the upward inflationary pressure is likely to continue during the coming month.’
The review includes the sectors-wise analysis of economic growth in the country, especially in agriculture, different industries such as manufacturing, construction, power, monetary policy, export and import, and price situation.
The MCCI highlighted that the external competitiveness of the country’s exports had been destabilised for power and gas shortage with readymade garments industry facing the highest obstacles.
‘Power cuts and gas shortage have reportedly rendered a significant part of the country’s garment sector capacity idle,’ the report said.
