UNB, Dhaka
The Unnayan Onneshan (UO) cautions that lower growth in agriculture, underperformance in medium and large scale manufacturing industries coupled with greater product and market concentration of export, and slow expansion of service sector may hinder the achievement of 7 percent growth target.
The independent multidisciplinary think tank gave the caution in its February issue of Bangladesh Economic Update 2016. Calling for adoption of strategies particularly focusing on the expansion of productive capacity, the UO advocates prudent harmonisation of macroeconomic policies that will foster agricultural growth, bolster industry, and expand service sector by creating adequate employment opportunities in the economy. Pointing to declined rate of growth in agriculture, the research organisation shows that rate of growth in agriculture declined to 3.04 percent in FY 2014-15 from 4.37 percent in FY 2013-14, representing 1.33 percentage points decrease.
Noting the fact that growth in agriculture sector has been sharply declining since FY 2009-10 when the rate stood at 6.15 percent. Since then, the rate of growth in the sector declined to 4.46 percent, 3.01 percent, and 2.46 percent in FY 2010-11, FY 2011-12, and FY 2012-13 respectively.