Power crisis to dim investment prospect: MCCI

Uncertainty in the energy sector development may adversely affect prospective investment although growth momentum in Bangladesh's economy continued in the third quarter of the current fiscal year, said a leading chamber.
All the important manufacturing sub-sectors have been witnessing a decline in growth since the beginning of fiscal 2009 and this trend seems to have continued till the first quarter of 2010, said Metropolitan Chamber of Commerce and Industry (MCCI).
However, recent trends in the growth of domestic demand buoyed by remittances and the recovery of exports suggest that manufacturing production may have picked up in the second quarter of FY10, according to a review of the chamber for the January-March period.
In the quarterly review, MCCI said crop production slowed down because of drought in the Aus season and inadequate rainfall in the Aman season.
"Much will now depend on the production of the Boro crop to determine whether the food grains production target in the present fiscal year would be achieved."
However, the livestock, fishery and forestry sub-sectors showed good growth in the quarter under review.
In the services sector, several of its sub-sectors such as wholesale and retail trade, real estate, and financial intermediation showed good growth in the third quarter.
The overall services sector growth was slightly lower than the trend growth of 6.4 percent witnessed since FY2003-04.
The average rate of inflation (12-month annual average consumer price index) rose to 5.95 percent in the third quarter of FY10 from 5.42 percent in the previous quarter.
Inflation on a point-to-point basis increased to 9.06 percent at the end of February from 8.51 percent at end-December.
"This was the highest point-to-point inflation in sixteen months," said the review.
On the external front, merchandise exports in January of the third quarter increased by 3.49 percent compared to 1 percent in the previous quarter.
This indicates that the global demand is rising gradually, which resulted in improving export performance, especially in raw jute, jute products, leather, petroleum by-products, bicycle, footwear, agro-processed food, terry towel and ceramic products, the review said.