Bangladesh’s import of capital machinery and intermediate goods, which are used to make finished products for both local and export markets, declined in the last fiscal year, reflecting a slowdown in private investment and the economy. The persistent dollar crisis, which began at the beginning of 2022-23, and higher inflation at home and abroad for a fall in the purchasing capacity of consumers are all to blame for the drop.
Besides, traditionally, investors go slow while making investments during an election year. It seems that existing investors are cautious while new investors are not coming forward to make fresh investments now. For example, the overall import of intermediate goods used in the garment industry, the largest exporting sector, plunged 22 percent to $17.31 billion in FY23. The sharpest slump was registered by yarn, followed by textile articles and dyeing and tanning materials.
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