The latest Economic Census 2024, conducted by the Bangladesh Bureau of Statistics (BBS), has highlighted a stark contrast between rural and urban economic growth.
Despite an increase in rural business establishments, 86% of rural entrepreneurs report a lack of capital and access to credit, while urban businesses continue to proliferate, often backed by substantial loans.
Speaking as the chief guest at the event unveiling the preliminary findings on Wednesday (29 January), Adviser Wahiduddin Mahmud lamented the economic imbalance, stating: "The rural population is energising our economy, yet they receive little attention. Meanwhile, urban businesses amass loans worth thousands of crores, only for their factories to shut down, leaving workers in distress. The government has had to finance workers' wages for three to four months—an alarming indication of economic disparity."
The findings, released at a conference in Agargaon, Dhaka, were presented by BBS Director General Mohammad Mizanur Rahman and the project’s director SM Shakil Akhter, with special guests Planning and Information Management Secretary Mahbub Hossain and Economic Taskforce Chairman KS Murshid in attendance.
Economic Expansion: 40 Lakh New Units Added in a Decade
According to the report, the total number of economic units in the country has surged to 1.18 crore in 2024, up from 78.18 lakh in 2013—a 51.91% increase over the past decade.
The workforce engaged in economic activities has also expanded by 25.55%, reaching 3.07 crore individuals, up from 2.45 crore in 2013.
Of those engaged in business, 2.37 crore (77%) are involved in permanent establishments, while 7.95 lakh (2.54%) operate in temporary markets, and 6.25 lakh (20%) work as mobile vendors.
The rural economy remains dominant, with 1.74 crore (57%) of the workforce residing in villages, compared to 1.32 crore (43%) in urban areas.
Service Sector Booms, Manufacturing Declines
The census underscores a shift towards the service sector, which has grown by 56.68%, with the number of service-oriented enterprises rising from 69.15 lakh to 1.08 crore in a decade.
As a result, the service sector's contribution to total economic units has climbed from 88.86% to 91.23%.
Conversely, the manufacturing sector has witnessed a continued decline, now accounting for just 8.77% of total economic units—down from 12.14% in 2003 and 11.54% in 2013.
The report attributes this trend to sluggish industrial growth and insufficient new investments in production facilities.
Employment Growth Slows: Only 62 Lakh New Jobs in 10 Years
Despite the expansion in economic units, employment growth has slowed significantly.
Between 2003 and 2013, the workforce grew by 1.33 crore, yet over the past decade, only 62.6 lakh new jobs have been created, bringing the total workforce in economic activities to 3.07 crore in 2024.
While the rise of e-commerce has introduced 1.16 lakh new enterprises, traditional employment sectors have struggled to generate sufficient job opportunities.
Challenges in Economic Governance and Data Integrity
Wahiduddin Mahmud also highlighted governance concerns, noting that political interference in statistical data has diminished in recent years, with efforts underway to amend the Statistics Act to ensure data transparency.
He remarked, "In the past, political influence skewed statistical reporting. Now, we are closing those loopholes. The introduction of digital technology in the census leaves no room for misinformation or concealment."
Economic Census: A Nationwide Undertaking
The fourth Economic Census, conducted from 10 to 26 December 2023, deployed 90,000 field workers to collect data using 74 survey questions.
Despite originally being scheduled every ten years since its inception in 1986, delays and adjustments have occasionally altered the timeline.
The 2023 Economic Census project has been allocated a budget of Tk579 crore.
The findings underscore a pressing need for policy intervention to address rural-urban economic disparities, enhance financial access for small businesses, and stimulate job creation, particularly in the manufacturing sector.
