According to a recent study conducted by LightCastle Partners, Bangladesh Business Confidence Index has been found to be 39 on a scale of -100 to 100, implying between low and moderate business confidence.
The report was launched on 29th of September at the Daily star Center.Mr. Mamun Rashid, Managing Partner, PwC Bangladesh; Mr. Niaz Rahim, Group Director, Rahimafrooz; and Mr. MasrurReaz, Program Manager, Trade & Competitiveness, IFC Bangladesh, spoke at the event.
The goal of the report is to quantify the prevalent business sentiments lending voice to the private sector business community, by coalescing their views in the form of a report. And this index is particularly interesting in the context of our country’s shift towards a middle income status.
The Harmonized Expectation Indicator (HEI) method was used to process the index score. This factors in performance reviews for the foregone year, current situation and expectations for the upcoming year. The 54 respondent, all C-suite members, represented different sectors proportional to their respective contribution to GDP.
41% of the respondents have higher export expectations in the coming year thanks to the recent infrastructures development, while 43% opine export figures will remain unchanged due to power & gas shortages and inefficiencies in port management. In fact, 100% of the respondents cited energy shortages as a major deterrent to optimism.
The major problem areas cited by the industry leaders are employee incompetency (96%), absence of standardization of regulatory bodies (73%), inefficient logistics (61%) and financing constraints (53%).Perhaps these sentiments can be best summed up in the words of one of the respondents, who said, “The optimism comes more due to the absence of darkness, rather than the presence of light.”
Industries that are deemed as the highest growth opportunities in the coming decade are: Power & Gas, Information Technology & Ready Made Garments. Industry leaders are not overwhelmingly optimistic regarding the economic performance for the coming year. However, they are not completely cynical either.
To learn more about the industry specific insights, you can download the Business Confidence Index 2016 report for free from LightCastle’s report portal at www.lightcastledata.com/drive.