Retail trade still rules the roost in Bangladesh's transitional economy with the highest gross value addition (GVA) worth Tk 2.087 trillion or nearly 63 per cent.
A latest publication of Bangladesh Bureau of Statistic (BBS) shows that the GVA of wholesale and retail trade services combined to the economy was worth Tk 3.339 trillion in the reporting year, 2021.
The GVA constitutes the value of all goods and services produced in an economy after deducting input cost.
The value addition from the trade services was paltry even a decade back in 2010, totalling Tk 385 billion only, which later on had some faster growth.
The BBS conducted the survey in 2021 on trade services and the updated findings were calculated thereon.
Wholesale value addition to the economy was Tk 835.38 billion in the year under review.
The lowest gross value added was Tk 416.67 billion or 12.48 per cent from wholesale and retail trade and repair of motor vehicles and motorcycles, auto-rickshaws, and rickshaws.
However, the value added to the economy marked an annual increase by 24.11 per cent during this period.
The total value of all fixed assets belonging to the service trades was Tk 1.255 trillion.
The highest type of fixed-asset expenditure was land (Tk 633.9 billion), followed by machinery, computer, and other instruments (Tk 213.8 billion) and furniture (Tk163.4 billion) respectively.
The total establishments were 2,540,897 in 2021. The number of establishments was, however, higher in 2010 at 2,650,123.
Value-added tax (VAT) and other taxes from wholesale and retail trade establishments have been estimated here. The highest for retail trade is 46 per cent, followed by wholesale and retail trade and repair of motor vehicles and motorcycles, auto-rickshaws and rickshaws 29 per cent and wholesale trade 25 per cent respectively.
The survey identifies problems facing wholesale and retail businesses, both, which stymie their potential growth.
The retail business has the most problems due to the corona pandemic. Then they have also a lack of buyers, lack of capital, high labour costs, and high transportation costs.
Economists view that the retail trade of the trade services has got many dimensions over the years. They say Bangladesh economy's new retail-trade products and services have been added over the past 10 years. "In my view, the retail sector contributed much to the economy as they have diversifications," says Dr M Masrur Reaz, Chairman at the Policy Exchange of Bangladesh.
He mentions that services related to mobile phone and its retail services were not in the past.
He says the number of establishments has "dropped to some extent as many retailers failed to survive competition".
jasimharoon@yahoo.com