Bangladesh Economic Update March 2014
The current issue of Bangladesh Economic Update attempts to understand the growth prospect in agriculture, industry and infrastructure sectors to explain the decline of growth in total gross domestic product (GDP). Agriculture and industry together comprise half of the GDP. As a result, the recent trend of these sectors is considered to be significantly associated with the expansion of economic growth.
The growth rate in GDP has declined from 6.71 percent FY 2010-11 to 6.23 percent in FY 2011-12 and then to 6.03 percent in 2012-13, which is projected to fall below the decadal average of 6.0 percent in FY 2023- 14.
The rate of growth of agriculture and its share in GDP is decreasing. The rate of growth in agriculture came down from 5.24 percent in fiscal year (FY) 2009-2010 to 5.13 percent, and then to 3.11percent and 2.17 percent in FY2010-2011, FY2011-2012 and FY2012-2013 respectively. This declining trend in growth of agriculture sector can largely be attributed to gradual loss of cultivable land, lack of invention, adoption and dissemination of new technology, and lack of sufficient support for agricultural research and training in the country..