Service sector’s share in GDP to drop slightly

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The contributions of agriculture and service sectors to the country’s gross domestic product are on the decline, with manufacturing sector picking up gradually, officials statistics showed.
Service sector still remains the biggest contributor to the economic growth, but its share may see slight decline in the current fiscal year ending on June 30.
Agriculture is estimated to account for 21.11 per cent of the GDP in 2006-07 fiscal year, less by 0.73 per cent from its contribution in the previous fiscal, according to the Bangladesh Economic Review 2007.
Sterility in boro rice and bird flu in poultry firms were the major reasons for the decline in GDP share of agriculture, the review elaborated.
The prime sector of the economy includes sub sectors like crops and vegetables, livestock, forestry and fisheries.
The contribution of crops and vegetables decreased to 1.92 per cent of GDP from 5.03 per cent and that of livestock dropped to 5.85 per cent from 6.15 per cent of the year before.
The share of service sector in the economy is projected to fall slightly to 49.12 per cent in 2006-07 fiscal year from 49.13 per cent of the year before, 49.41 per cent in 2004-05 and 49.23 per cent in 2003-04 fiscal years.
Sub-sectors like hotel and restaurant, retail and wholesale marketing, transport, financial sector, real estate, public administration, education, health and community activities are some of the major areas, which are included in the service sector.
Manufacturing sector is projected to have a bigger role in the economic growth in 2006-07, with its share rising to 17.79 per cent from 17.08 in the previous fiscal year, the review mentioned.
Large and medium enterprises would account for 12.68 per cent while small industries would share 5.11 per cent.
Economists said the GDP contribution and growth of agricultural sector must be enhanced for ensuring adequate farm production to reduce import dependence, and employment generation, since farm sector still remains the biggest rural employer.
They also felt that agriculture sector, both crop and non-crop sub sectors, need to have more attentions and allocations from the government to increase local supplies and protect domestic market from the price fluctuation influenced by global commodity market volatility.
Enhanced agricultural growth is also needed to sustain the accelerated activities seen in the manufacturing front, they said.
‘The manufacturing sector won’t be able to have a sustained growth if farm sector growth is stymied,’ an economist told New Age.

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