Industrial Sector: Sluggishness and Catching Up
This issue of Bangladesh Economic Update concentrates on the current situation and prospect of industrial sector. It also reviews the state of technology catching up. The industrial sector requires immediate attention due to sluggishness and policy ambivalence. The indicators of industrial performance such as industrial index, disbursement of term loan, opening and settlements of letter of credits (LCs), investment demand suggest sliding down.
A number of recent policy and structural problems are associated with the sluggish performance of industry. Contractionary monetary policy, inadequate infrastructure, incompatible fiscal policy, unfavourable exchange and interest rates, loan scenario accompanied with some structural bottlenecks are found to have causal effect on the present floundering performance of the industrial sector.