Consecutive Decline in Private Investment to GDP Ratio

Private investment in Bangladesh has experienced a decline in the current fiscal year, attributed to factors such as the persisting dollar crisis, global uncertainty, higher inflation, and reduced international demand for goods. According to provisional data from the Bangladesh Bureau of Statistics, the private investment-to-GDP ratio dropped to 23.64%. The constraints caused by the dollar crisis, import controls, and uncertainty in the international market have hindered businesses' ability to invest in new industrial units.

Bangladesh's gross domestic product (GDP) is expected to show a slower growth rate in the current financial year, primarily due to challenges faced by the industrial sector, according to official figures. The provisional projection by the Bangladesh Bureau of Statistics (BBS) estimates a GDP expansion of 6.03% for the fiscal year ending in June, down from 7.1% in the previous year.

IMF report shows Bangladesh's GDP growth rate expected to surpass China this fiscal year and second only to Vietnam in the next fiscal year. The IMF Regional Economic Outlook for Asia and Pacific May 2023 report forecasts that Bangladesh's GDP growth rate will slow down to 5.5% in 2023 because of demand-management measures but will still be higher than China's projected growth rate of 5.2%.

The World Bank (WB) and the Asian Development Bank (ADB) have downgraded Bangladesh’s economic growth forecast below 6% for the current fiscal year due to several internal and external shocks. The World Bank lowered its forecast to 5.2% while the ADB revised the rate down to 5.3%. Both multilateral development financiers projected a rebound in economic growth, with the World Bank expecting growth to accelerate to 6.2% in the fiscal year 2023-24.

Asian Development Bank (ADB) predicts GDP growth of 5.3% in Bangladesh for the fiscal year 2022-23, with inflation anticipated to rise from 6.2% to 8.7%. The organization expects the current account deficit to decrease from 4.1% to 1.6% of GDP due to import loosening and increased remittances.

Olympic Industries, the market leader in biscuits, will spend about Tk3.04 crore on land purchase, including expenditures for registration. It would buy 86 decimals of land at Lolati in Narayanganj, which is adjacent to its biscuit and confectionery units.