Economic units grow 118% in 10 years

More than 8m households and establishment units were engaged in economic activities across the country, according to a new census released in Dhaka on Sunday.

The figure is 118% higher than the previous census conducted during 2001-2003 when households and establishment units or economic units were more than 3.8m, said the preliminary report on Economic Census 2013.

The highest number of economic units was set up in Dhaka, followed by Chittagong, Rajshahi, Rangpur, Khulna, Barisal and Sylhet. Dhaka has been persistently the house of the highest number of economic units with strong upward trend as the number increased to 2.5m in 2013 from 1.2mn in 2003.

With a view to improve its micro-level policy and planning for informal sector workers, the Bangladesh Bureau of Statistics (BBS) carried out the fieldwork during March 31 to May 31 this year in two phases to prepare the census – the third of its kind since 1986.

The services sector activities like wholesale and retail trade, including repair of motor vehicles and motorcycles, makes up the highest 45.91%, followed by transportation and storage13.65%, manufacturing 11.76% and other service activities 8.48% of the total economic units.

“It’s important to know the authentic data to make proper development planning for accelerating economic activities,” said Finance Minister AMA Muhith while unveiling the latest census report.

The economy is in the process of growth, but manufacturing sector is growing less-than-expected level over the years, he said. On the other hand, agriculture and services sectors’ contribution to the economy was immense, said the minister.

Of the total economic units, the number of permanent establishments accounted for 56.2% to 4.6m in 2013, while the number of temporary establishments made up 6.2% to 0.5m and households 37.6% to 3m, implying that the Bangladesh economy is getting sustainable and moving towards industrialisation, according to the report.

The growth in 2013 over 2001-03 in the rural areas is significantly higher by more than 150% compared to urban areas of almost 63%, it said.

It is encouraging to mention that once poverty-prone Rangpur division has experienced substantial growth at micro level economic activities. The total number of economic units in this division was over 0.2m in 1986, which has increased to over 0.4m in 2001-03 and further increased to 1m in 2013, says the report.

“The results of the preliminary report may slightly differ from those of the final report to be prepared after processing all census questionnaires,” said Golam Mostafa Kamal, BBS Director General.

He said another improvement has been brought through collecting the information on employment, which will facilitate classification of the economic units. This census will also be used to prepare a business register of all economic activities for conducting future establishments and institutions-based surveys, he said.

Economic Census 2013 was different from earlier two censuses in different dimensions, making it the first full count census covering all nonfarm economic units – permanent and temporary establishments and household economic activities.

However, agricultural establishments such as farm based livestock, poultry and fishery were also included in this census, which were not covered in the earlier economic censuses.

In addition to economic activities carried out in the households, activities operated outside the households such as hawking; operating own rickshaw, push cart, van, easy bike, other transports; and street vending were included within the purview of the household economic activities while these activities were included as temporary establishments in 2001 and 2003.

Therefore, the findings of the Economic Census 2013 would not be fully comparable with that of earlier censuses particularly for the temporary economic units and household economic units.

The statistical agency collected data from entrepreneurial units across the country, collected information from households with economic activities and business on activities of business units, manufactured products or services, ownership, equity, sales and accounting practices.

With an estimated cost of Tk1.93bn, the BBS revealed the census at a time when the country’s economy grows by around 6% a year, supported by increasing industrial and services sector activities.

In Bangladesh, the economic census is supposed to be conducted every ten years on a local to national level to provide data concerning products, sales, industries, economic activities, investment, employers, and employees.

The BBS conducted the first census in 1986 and the second one was done in two phases in 2001 and 2003. During 1986 to 2003, the number of business establishments grew by 3.3% a year.

Planning Minister AK Khandker, Industries Minister Dilip Barua, Adviser to the Prime Minister on Economic Affairs Dr Mashiur Rahman, Executive Chairman of the Board of Investment Dr Syed Abdus Samad were present at the programme.