Several nondescript sectors, like courier services, money exchange, foundation-run activities, and arts and recreation, have been picked up for having major untapped potential to raise Bangladesh's economic growth.
Based on preliminary case studies, the national statistical agency - BBS -- estimates that the sectors collectively contributed more than Tk 4.54 billion to the economy few years back.
The sectors also emerged as important sources of employment as they generated nearly 21,000 jobs during the study period of 2024.
Officials at the Bangladesh Bureau of Statistics, however, say both their employment and economic contributions are likely to be substantially higher in the current fiscal year. They are growing sectors following new needs stemming from rapid urbanisation and growing middle-income class.
People familiar with the developments told the FE on Saturday that the current estimates are based largely on case studies rather than comprehensive nationwide surveys, suggesting that the sectors' actual contribution is significantly underestimated.
They think large-scale surveys would provide a more accurate assessment of these activities, many of which have expanded rapidly in recent years.
The BBS currently captures part of the value added by these growth hikers in the national accounts. The estimates they receive remain largely incomplete because they rely heavily on administrative data from regulators, such as Bangladesh Bank.
And some data about their value addition to the economy are "assumption-based".
The agency has never conducted dedicated survey in the past nationwide surveys covering these relatively small but fast-growing sectors, a senior official at the national accounting wing told the FE.
"Previously, we relied on data from Bangladesh Bank on money-exchange houses. But we believe there are many ways to hide their real earnings," he says.
He notes that the courier industry expanded manifold in recent years, ramped up on rapid growth of social-media commerce and rising demand from urban households.
"If we conduct surveys through courier gateways, we will not be able to estimate their actual sales and value addition as most transactions are made on cash-on-delivery payments," he says.
A large share of sales through Facebook and other social -media platforms is settled through cash-on-delivery, making transactions difficult to trace through conventional data sources.
Officials say the current estimate of the courier sector is derived from a limited case study involving selected service providers, meaning its actual contribution to the economy is likely to be much larger.
The BBS believes the courier industry now requires a nationwide survey to capture its total output and gross value added more accurately. Officials also say many foundation-run organisations provide substantial economic services that are not fully reflected in the national accounts. For example, foundations established by banks or corporate-operated hospitals, educational institutions and other social services whose economic outputs have not been comprehensively measured in the past.
Similarly, while money exchanges operate mainly in Dhaka, Chattogram and Sylhet, their contribution is currently estimated largely through trade-margin data collected by the central bank.
Officials have said a broader assessment is needed to measure their overall economic activity.
The BBS also has found that the arts, culture and recreation sector has expanded rapidly in recent years, supported by the growth of resorts, entertainment facilities and other leisure businesses.
jasimharoon@yahoo.com
