Bangladesh has initiated efforts to develop a new economic index that will provide a more accurate assessment of the country’s growing services sector.

The Bangladesh Bureau of Statistics (BBS) has begun data collection for the Quarterly Index of Services Production (QISP), with the first report expected by June.

Officials say the new measure is necessary as the existing Index of Industrial Production (IIP) does not fully capture the scope of economic activities in the rapidly expanding services sector.

“The IIP is no longer adequate,” the BBS stated, highlighting the sector’s increasing contribution to GDP, which stood at 52.72% in the 2023-24 fiscal year. The agency noted that changes in consumption patterns and economic expansion require a more precise measure of short-term activity.

The QISP will track key industries, including insurance, mobile financial services, tourism, aviation, education, health, research, and postal services. More accurate data for economic planning is expected to benefit policymakers and businesses.

Bangladesh follows India’s example in launching such an index, as India introduced a similar indicator in 2012. Officials believe the QISP will help address gaps in economic measurement and provide a clearer picture of the nation’s evolving economy.