The agriculture sector attained a lower 2.53 percent growth (provisional) in FY12, against 5.13 percent actual growth achieved in FY11 (Table 2.1.1). The agriculture and forestry sub-sector recorded a lower growth of 1.72 percent in FY12 compared with the 5.09 percent actual growth in FY11. Of which, crop and horticulture subsector decelerated substantially to 0.94 percent in FY12 compared with the 5.65 percent in FY11 partly due to higher base effect; animal farming and forest and related services maintained a 3.39 percent and 4.42 percent growth respectively in FY12 compared with the 3.48 and 3.90 percent growth in FY11. The fishing sub-sector registered a higher growth of 5.38 percent in FY12 compared to 5.25 percent growth in FY11. The contribution of agriculture sector to GDP was lower in FY12 (19.29 percent) which was 20.01 percent in FY11.
A decomposition of the GDP growth rates in FY2011 and FY2012 bears out that in the overall growth in FY2012 (6.3 per cent) only 0.5 per cent was the contribution of the agriculture sector; in contrast the figure was 1.0 per cent in FY2011 (Table 2.1). This decline in agriculture sector’s contribution to the GDP was more than the overall decline in the GDP growth (0.4 per cent). Accordingly, it appears that the decline in GDP growth was mostly accounted for by the relatively depressed performance in the agriculture sector, more particularly, its crop component. In contrast, industry sector, backed up by its manufacturing and construction sub-sectors, improved their contribution to growth. Indeed, out of 6.3 per cent growth in FY2012, 2.8 per cent originated from the industry sector, the highest in recent history. Service sector’s growth contribution was limited to about 2.9 per cent. FY2012 related to a period of sluggish economic performance in the developed economies with its knock-on affects on the export-oriented sectors and export sector performance of Bangladesh. On the other...