Marginal rise in service, industry sectors' contribution to GDP
Saturday, 6 June 2009
FHM Humayan Kabir
Contribution of the service and industry sectors to the country's gross domestic product (GDP) rose in the outgoing fiscal, officials said Friday.
Bangladesh Bureau of Statistics (BBS) data shows the share of the service sector to the GDP increased by 0.20 percentage points and the industry sector by 0.07 percentage points in FY2009 over those of FY2008.
The BBS said although the growth of the agriculture sector was impressive but its contribution to the GDP declined to 20.60 per cent in the year from 20.83 per cent in the previous FY2008.
It said the share of the service sector in the country's total Tk 6149.432 billion GDP rose to 49.67 per cent in FY2009 from 49.47 per cent in FY2008 although its growth dropped to 6.25 per cent from 6.49 per cent.
Besides, the contribution of the industry sector to the GDP also rose to 29.73 per cent in the outgoing FY09 from 29.70 per cent in FY2008 despite a plunge of its growth, the BBS said.
In the outgoing financial year, the industrial sector maintained a 5.93 per cent growth, a fall by 0.85 percentage points over that in FY2008.
A senior finance ministry official said the government has taken cautious approach to maintain at least steady economic growth in the next financial year weathering the impact of global financial crisis.
There will several fiscal measures in the next budget to attract more investment, particularly the foreign direct investment, to maintain the growth he said.
Research director of the Bangladesh Institute of Development Studies (BIDS) Zaid Bakth said it is good news for the country that the contribution of the industry and service sectors to the GDP is increasing.
"But it would be difficult to keep the higher growth in the next financial year if the government does not take encouraging fiscal measures for the investors," he said.
"I think the manufacturing sub-sector's contribution to the industrial sector is not so encouraging. Investment in construction and energy sub-sectors may have bigger share in it," he said adding, "Economy will improve when the manufacturing sector gets a boost."
Mr. Bakth said the contribution of service sector has increased mainly because of expansion of different shopping malls in the city.
But if the country could facilitate the expansion of the IT and technology-based services the real economic growth would be ensured, he added.
Power and energy supply is the major challenge for the government to maintain the country's industrial growth as well as the overall economic growth in the next year, Mr. Bakth said.
Contribution of the service and industry sectors to the country's gross domestic product (GDP) rose in the outgoing fiscal, officials said Friday.
Bangladesh Bureau of Statistics (BBS) data shows the share of the service sector to the GDP increased by 0.20 percentage points and the industry sector by 0.07 percentage points in FY2009 over those of FY2008.
The BBS said although the growth of the agriculture sector was impressive but its contribution to the GDP declined to 20.60 per cent in the year from 20.83 per cent in the previous FY2008.
It said the share of the service sector in the country's total Tk 6149.432 billion GDP rose to 49.67 per cent in FY2009 from 49.47 per cent in FY2008 although its growth dropped to 6.25 per cent from 6.49 per cent.
Besides, the contribution of the industry sector to the GDP also rose to 29.73 per cent in the outgoing FY09 from 29.70 per cent in FY2008 despite a plunge of its growth, the BBS said.
In the outgoing financial year, the industrial sector maintained a 5.93 per cent growth, a fall by 0.85 percentage points over that in FY2008.
A senior finance ministry official said the government has taken cautious approach to maintain at least steady economic growth in the next financial year weathering the impact of global financial crisis.
There will several fiscal measures in the next budget to attract more investment, particularly the foreign direct investment, to maintain the growth he said.
Research director of the Bangladesh Institute of Development Studies (BIDS) Zaid Bakth said it is good news for the country that the contribution of the industry and service sectors to the GDP is increasing.
"But it would be difficult to keep the higher growth in the next financial year if the government does not take encouraging fiscal measures for the investors," he said.
"I think the manufacturing sub-sector's contribution to the industrial sector is not so encouraging. Investment in construction and energy sub-sectors may have bigger share in it," he said adding, "Economy will improve when the manufacturing sector gets a boost."
Mr. Bakth said the contribution of service sector has increased mainly because of expansion of different shopping malls in the city.
But if the country could facilitate the expansion of the IT and technology-based services the real economic growth would be ensured, he added.
Power and energy supply is the major challenge for the government to maintain the country's industrial growth as well as the overall economic growth in the next year, Mr. Bakth said.