Service sector expands 11.5% in FY26

Bangladesh’s service sector expanded by around 11.5 percent in the outgoing fiscal year, reaching Tk 32.06 lakh crore from Tk 28.75 lakh crore a year earlier, according to Bangladesh Bank data.

The sector grew by Tk 3.31 lakh crore in FY2025-26, continuing its steady expansion in recent years.

The service sector covers wholesale and retail trade, transport and storage, financial services, real estate, ICT, hotels and restaurants, education, healthcare and other professional services.

Bangladesh Bank data shows the sector grew from Tk 18.11 lakh crore in FY2020-21 to Tk 20.27 lakh crore in FY2021-22, Tk 22.95 lakh crore in FY2022-23 and Tk 25.72 lakh crore in FY2023-24 before reaching Tk 28.75 lakh crore in FY2024-25.

Economists said rising domestic demand, changing income patterns and greater reliance on trade, finance, communications and transport are driving the sector’s growth.

However, they cautioned that expansion in size alone would not strengthen the economy. Increasing productivity, investment, technology use and skilled manpower, alongside improving service quality, will be crucial.

They also highlighted the potential of digital services, BPO, fintech, logistics, tourism, healthcare and professional services to create higher-value employment and support long-term economic growth.

Meanwhile, preliminary Bangladesh Bureau of Statistics estimates show the country’s GDP crossed $500 billion for the first time in FY2025-26.

SKS