# Power-gas growth slows to 0.31pc of GDP in Q2
# That was 2.99 pc in the same period last yr
Despite tackling various obstacle and difficulties, power and gas has been playing major role in the country’s economy but its contribution slowed down amid ongoing dollar crisis.
In order to meet the demand, power and gas usually import from others countries, but the import of gas has declined due to the dollar crisis. As a result, the contribution of gas and electricity to the gross domestic product (GDP) has also decreased.
According to Bangladesh Bureau of Statistics (BBS) recent report, in the second quarter (October-December) of the financial year 2023-24, the growth of electricity, gas and water supply in GDP declined to 0.31 percent which was 2.99 percent in the same period last year. In the second quarter (October-December), the growth of this sector was negative 0.45 percent, which was 11.6 percent in the previous quarter. It was 10.88 per cent in the second quarter of the financial year 2022-23.
Industry growth is the lowest in the second quarter of the current financial year 2023-24. Industrial growth slowed to 3.24 percent in October-December from 14 percent two years ago. In the same period of the 2022-23 financial year, the growth of this sector was 10 percent. However, despite the decrease in growth, the value addition of the industrial sector increased to Tk 3,12,107 crore in the second quarter of the current fiscal year. In the previous quarter, it was Tk 2 lakh 87 thousand 694 crore.
That is, the value addition of this sector has increased by Tk 24,413 crore in three months. There are four sub-sectors of the industrial sector. Electricity, gas and water supply are one of them. In the last October-December quarter, the value added of this sector was Tk 9,159 crore. But three months ago, the value added of this sector was Tk 11,297 crore. That is, the value addition of this sector has decreased by Tk 2,138 crore in three months.
Dr Ijaz Hossain, a former professor of BUET and energy expert, said the reduction in energy import is affecting various economic activities, including GDP growth and industrial production. So there is no scope to reduce energy imports to save dollars in any way. To save dollars, the import of non-essential goods can be limited. If energy imports are disrupted, GDP growth will be affected. Therefore, he advised the government to take this matter seriously.
The service sector is the largest contributor to the country's economy. Then there's the industrial sector. The industry's contribution to the economy has been steadily increasing in the last few fiscal years. The industry's contribution to GDP was 37.65 percent in the last financial year 2022-23. The sector, which contributes more than one-third to GDP, will have a negative impact on employment as its growth will fall drastically.
ZH
