Bangladesh witnessed a decline in capital machinery and intermediate goods imports during the last fiscal year, reflecting a slowdown in both private investment and the economy. The drop is attributed to a prolonged dollar crisis, elevated inflation impacting consumer purchasing power, and increased political uncertainty ahead of the upcoming parliamentary election. Capital machinery imports fell by 11%, reaching $4.84 billion, while other capital goods imports dipped by 20%. The import of intermediate goods, crucial for the garment sector, dropped by 22% to $17.31 billion. Yarn imports plunged by nearly 47%, with textile articles and dyeing materials also experiencing a decline. Experts cite difficulties in opening letters of credit due to the dollar shortage, high inflation, and political uncertainty as key factors hindering investment and economic growth prospects.
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