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Bangladesh's large industrial sector largely defied a downtrend elsewhere by posting an annualized 4.15-percent growth in April, although the largest-export-earning apparel industry was little downbeat, according to official statistics.
Latest Bangladesh Bureau of Statistics (BBS) data showed the Quantum Index of Large-Scale Manufacturing (LSM) rose to 182.12 in April 2025, up from 174.87 in April 2024, giving economists to feel good about potential advances in economic performances.
The growth was broad-based, with 19 out of 23 major industrial sectors contributing positively.
However, four key sectors -- readymade garments (RMG), food products, plastic and rubber goods, and chemicals -- registered a decline, partially weighing on the overall momentum in the economy.
The apparel sector, which holds the largest weight of 61 per cent in the index, contracted by 0.25 per cent during the month. Though the decline was less than 1.0 per cent, its sheer size makes it a pivotal driver of overall manufacturing performance.
"Any fluctuation in RMG significantly impacts the overall index," says Dr M. Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh. "That said, the positive performance of other sectors helped offset the RMG contraction in April."
Among the sectors that registered negative growth year on year, food products declined by 2.4 per cent, chemical products fell 1.59 per cent, plastic and rubber products dropped 0.65 per cent and machinery and equipment shrank nearly 9.0 per cent.
On the upside, textiles, which carry the second-highest weight in the index, expanded by 5.34 per cent. Other high-performing sectors included computer, electronic and optical products: up 5.68 per cent, paper and paper products: up 14 per cent, printing: up 12 per cent, pharmaceuticals: up 12 per cent, electrical equipment: up 16.46 per cent, basic metals: up 10.23 per cent, furniture: up 6.1 per cent, tobacco products: up 7.27 per cent.
Large-scale manufacturing contributes over 11 per cent to Bangladesh's gross domestic product (GDP) and is a key indicator of the country's industrial health.
Industry leaders and economists offered mixed reactions over the April ups and downs.
Anwar-ul Alam Chowdhury (Parvez), President of Bangladesh Chamber of Industries (BCI), identified elevated interest rates and weaker purchasing orders as key barriers to stronger growth.
Syed Nazrul Islam, a former leader of Bangladesh Garment Manufacturers and Exporters
Association (BGMEA) and Managing Director of Well Dress, says a seasonal slowdown in RMG orders partly explains the sector's decline.
Despite sectoral challenges, economists believe economic activity is gradually recovering, supported by a stabilised foreign-exchange market and rising domestic demand.
Dr. Zahid Hussain, former lead economist at the World Bank's Dhaka office, acknowledges that the mid-July student-led uprising in 2024 caused temporary disruptions, but expresses optimism about the recovery path.
"Inflation remains a challenge for industrial expansion," he says. "But it is gradually easing."
jasimharoon@yahoo.com