A look at Services Sector performance – Engineering Post Report

Share of the Services Sector in Gross Domestic Product (GDP) in FY 2021 reached to 62 per cent and posted a growth of 4.4 per cent.

According to the details available in this regard, Wholesale & Retail Trade is dependent on the output of agriculture, manufacturing and imports. The growth in trade value added relating to agriculture, manufacturing and imports stands at 3.8, 8.2 and 16.1 per cent respectively. Based on these, the growth of Wholesale and Retail Trade was recorded at 8.4 per cent in FY 2021.

In Transport, Storage and Communications, Railways, Water Transport, Air Transport and Pipeline Transport constituted 11 per cent share in it. In FY 2021, there was almost 24 per cent decline as the value recorded at Rs 116.9 billion, which was Rs 152.8 billion last year, mainly due to lockdown and restrictions on travel.

Likewise, Communication which includes Postal system including courier services and telecommunication activities having approximately 16 per cent share in Transport, Storage and Telecommunication posted a decline of 21.4 per cent. However, Road Transport which has 74 per cent share posted a growth of 8.4 per cent while Storage which has 3 per cent share posted 8.7 per cent growth during FY 2021. Due to these factors, Transport, Storage and Communication on the whole posted a decline of 0.6 per cent.

During FY2021, Finance and Insurance Sector showed an overall increase of 7.8 per cent due to increase in deposits, loans and insurance. Last year, in March 2020, Quarter on Quarter (QoQ) growth of Assets was 0.7 per cent while in December, the Year on Year growth had remain 14.2 per cent.

As regards the Housing Services (Ownership of Dwellings), its data is survey based. Thus keeping the past trend, constant growth rate of almost 4.0 per cent was estimated while the provisional growth in General Government Services based on budgeted data stands at 2.2 per cent. Regarding Other Private Services, including diverse economic activities scattered over many industries. However, it could be categorized  into Computer Related  Activities, Professional, Scientific and Technical Activities , Education,  Health,  Recreation, Cultural and Sports Activities and Miscellaneous  whereas  Professional, Scientific and Technical Activities  almost had  as much as 61 per cent  share in Other Private Services.

For FY 2021, growth in Professional, Scientific and Technical Activities remained  5.6 per cent  while due to lockdown measures and closing of recreational places, hotels, etc, a negative growth of 21 per cent  was observed during the period under report in  Recreation, Cultural and Sports Activities (its share is 0.05 per cent I Other Private Services). As such, thus the provisional growth of Other Private Services for FY 2021 had remained on the whole 4.6 per cent.