The capital city of Dhaka drives nearly half of Bangladesh’s national economy, according to a new report by the Dhaka Chamber of Commerce and Industry (DCCI). The findings, released at a DCCI event today, highlight the city’s overwhelming dominance in the country’s economic landscape.
The DCCI’s Economic Position Index (EPI) survey revealed that 46 per cent of the country’s total GDP is concentrated in Dhaka, and 40 per cent of all employment is located in the capital.
“While the national average per capita income stands at $2,820, Dhaka residents enjoy an average per capita income of $5,163,” stated the report, emphasizing the significant wealth disparity between the capital and the rest of the nation.
Key Economic Concentration Data
The quarterly EPI survey evaluated overall economic activities, including manufacturing, trade, exports, employment, and investment.
Key data points from the DCCI survey show Dhaka’s centrality:
- Exports: The city accounts for 40 per cent of the country’s total exports.
- Population Density: Dhaka houses 32 per cent of the urban population and 11.2 per cent of the country’s total population, an indicator of extreme urban concentration that is among the highest in Asia.
- Sectoral Control: The survey found that a relatively small number of institutions control major economic sectors:
- 365 institutions manage 55.8 per cent of the manufacturing sector.
- 214 institutions control 58.6 per cent of the apparel (readymade garments) sector, alongside 289 institutions in the service sector.
Informal Economy and Expert Recommendations
Speakers at the DCCI event noted a critical structural issue: approximately 80 per cent of the country’s economy relies on the informal sector. This vast, unorganised sector includes small vendors, rickshaw pullers, informal construction workers, and micro-entrepreneurs whose contribution is substantial but often undocumented in formal reports.
Experts stressed the urgent need for timely and data-driven policymaking to adapt to the rapidly changing economy. They also advised that the agricultural sector, a fundamental part of the national economy, be included in future DCCI surveys to provide a comprehensive economic picture.
Analysis: The Risk of Economic Centralisation ⚠️
The survey results highlight a phenomenon known as economic centralisation, where a single region dominates national economic activity. While Dhaka’s performance is commendable, its hyper-dominance poses significant long-term risks, which policymakers must address for sustainable and equitable growth.
Why Decentralisation is Crucial for Stability
- Increased Economic Vulnerability: The extreme concentration of economic output (46% of GDP) in one city means that the entire national economy is highly vulnerable. Any major disruption—such as a natural disaster, a health crisis, or a significant infrastructure failure in Dhaka—could result in a catastrophic national economic shock.
- Exacerbated Inequality: The vast difference in per capita income ($5,163 in Dhaka vs. $2,820 nationally) indicates that economic benefits are not being distributed fairly across all regions, leading to widening regional disparities and social tensions.
- Strain on Urban Infrastructure: The overwhelming population and employment concentration puts immense strain on Dhaka’s utilities, transport systems, housing, and environment, lowering the overall quality of life and business efficiency.
Conclusion: For a robust and resilient economy, experts suggest a concerted effort toward economic decentralisation. This requires strategic public investment in infrastructure, industrial parks, and educational institutions in secondary cities—such as Chattogram, Khulna, and Sylhet—to create alternative centres for investment and job creation. This shift would distribute economic prosperity, reduce pressure on the capital, and build a more stable foundation for Bangladesh’s future growth.
