BBS Economic Census: Service sector dominance grows as industrial growth slows

Senior Staff Reporter Published: 29 January 2025, 09:42 PM | Updated: 29 January 2025, 10:04 PM
BBS Economic Census: Service sector dominance grows as industrial growth slows
Guests hold copies of the preliminary report of the Bangladesh Bureau of Statistics (BBS) Economic Census 2024 at its launching at the BBS Bhaban in Dhaka on Wednesday. – Jago News Photo

Over the past decade, the service sector in Bangladesh has expanded significantly, while the industrial sector has experienced a notable slowdown. The service sector now holds an overwhelming dominance among the country's economic units. In 2013, there were 6,915,982 units in the service sector, but by 2024, this number surged to 10,083,589. Today, a staggering 91.23% of all economic units in the country belong to the service sector.

However, growth in the industrial sector has been sluggish. In 2013, there were 902,583 economic units in the industrial sector, which increased only marginally to 1,041,468 by 2024. This represents a growth of just 138,885 units over a decade, or a mere 15.38% increase. In stark contrast, between 2001 and 2013, the industrial sector grew by an impressive 100.41%.

These findings are part of the preliminary report of the Bangladesh Bureau of Statistics (BBS) Economic Census 2024, which was released on Wednesday, January 29, at the BBS Bhaban. The event featured Education and Planning Advisor Dr. Wahiduddin Mahmud as the chief guest, along with Project Director SM Shakil Akhtar and Deputy Project Director Md. Mizanur Rahman, who presented key insights from the census data.

According to the report, the total number of economic units in the country has grown from 4,048,799 in 2013 to 11,877,364 in 2024. Among these, 6,288,214 units are permanent, 5,766,21 units are temporary, and 5,012,529 units are household-based. Geographically, 70.27% of these units are located in rural areas, while 29.73% are in urban areas.

The industrial sector's share of total economic units has declined sharply. In 2013, 11.54% of economic units were in the industrial sector, but by 2024, this figure dropped to just 8.77%, further highlighting the growing dominance of the service sector, which now accounts for 91.23% of all economic activity.

Regional Insights

A regional breakdown reveals that the Dhaka Division hosts the highest concentration of economic units, accounting for 27.03% of the national total. This underscores Dhaka's role as the economic hub of the country.

Key Takeaways:

-Service Sector Surge: The service sector has grown dramatically, now representing 91.23% of all economic units.

-Industrial Slowdown: The industrial sector's growth has slowed significantly, with only a 15.38% increase over the past decade compared to a 100.41% rise between 2001 and 2013.

-Rural Dominance: The majority of economic units (70.27%) are located in rural areas, reflecting the continued importance of rural economies.

-Regional Concentration: The Dhaka Division remains the epicenter of economic activity, hosting 27.03% of all units.

This census highlights the shifting dynamics of Bangladesh's economy, where the service sector is thriving, but the industrial sector faces challenges in maintaining its previous growth trajectory. Policymakers will need to address these disparities to ensure balanced and sustainable economic development in the years ahead.

MOS/NMA