The services sector, which accounts for more than half of Bangladesh's gross domestic product (GDP), continued to expand in the fiscal year 2025-26, with its size rising to Tk 32.06 trillion from Tk 28.75 trillion a year earlier.
The sector's output increased by Tk 3.31 trillion, or around 11.5 per cent, year on year in FY26, according to the latest Bangladesh Bank (BB) data.
The size of the sector - stretching over accommodation, education, financial, transport, and wholesale and retail trading - increased steadily over the past five fiscal years, rising from Tk 18.11 trillion in FY21 to Tk 20.27 trillion in FY22, Tk 22.95 trillion in FY23, Tk 25.72 trillion in FY24, Tk 28.75 trillion in FY25, and Tk 32.06 trillion in FY26.
The figures show the service economy has become an increasingly important pillar of the country's economic growth, alongside manufacturing, agriculture, and other productive sectors.
The sector covers a wide range of economic activities, including wholesale and retail trade, transport and storage, financial services, real estate, information and communication technology, hotels and restaurants, education, healthcare, and other services.
Its continued expansion is particularly important for Bangladesh as the economy gradually moves towards a more service-oriented structure.
However, the pace and quality of growth in the sector will depend increasingly on productivity, investment, technology adoption, and the availability of skilled workers.
Economists say the expansion of the services sector reflects rising domestic demand and the increasing importance of trade, finance, communications, transport, and other service activities in the economy.
At the same time, they caution that a larger service sector alone does not necessarily mean higher productivity or stronger economic resilience.
Bangladesh needs to improve the quality and sophistication of services to generate higher-value employment and support sustainable economic growth.
Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, says the continued expansion of the services sector indicates its growing contribution to the economy, but the focus should now shift from merely increasing the size to improving its productivity and competitiveness.
"The services sector is now the largest component of Bangladesh's economy, and its continued expansion is a positive development. However, the real challenge is to ensure that this expansion translates into higher productivity, better-quality employment, and greater value addition."
"As Bangladesh moves towards a more diversified economy, we need to transform the services sector through technology, skills development, innovation, and improved regulatory efficiency. Financial services, logistics, ICT, healthcare, education, and professional services can become important sources of productivity and export growth," he adds.
The rise in the size of the sector from Tk 18.11 trillion in FY21 to Tk 32.06 trillion in FY26 demonstrates its growing economic importance, he says.
"But sustaining this momentum will require a stronger investment environment, reliable infrastructure, digital connectivity, and a workforce equipped with market-relevant skills."
"Bangladesh should also look at services as an export opportunity. A competitive services sector can help diversify export earnings beyond traditional merchandise exports and create quality jobs for the country's young workforce," Dr Reaz adds.
The sector's expansion also highlights the need for stronger policy support for emerging areas, such as digital services, business-process outsourcing, fintech, logistics, tourism, healthcare, and professional services.
With the economy facing challenges from high inflation, investment weakness, and external uncertainties, economists believe improving productivity in the services sector could play an important role in supporting medium- and long-term growth.
The country's economy is set to cross a historic milestone as the size of the GDP is estimated to surpass the half-trillion-dollar mark in FY26, according to provisional estimates released by the Bangladesh Bureau of Statistics (BBS).
The nominal GDP is projected to rise to $501 billion in FY26, up from $456 billion in the previous fiscal year, marking a significant expansion in the size of the economy, according to the BBS report.
