Growth of service sector

Services comprise a set of economic activities like transportation, trade, tourism, communications, banking and insurance, real estate, public administration, defence and so on. According to an Adrian — Payne four factors are responsible for growth in the service sector. The life expectancy has raised which in turn, is producing an expanding retired population.

Growth of service sector

Share Tweet Email An analysis shows that the share of agriculture has been declining gradually over time from The most unique factor about the billion-dollar club is that the bulk of the companies are not from the agri sector.

But they are from the services sector. This includes telecom, power companies, utilities, retail giants and food companies.

Manufacturing giants and agriculture are largely missing from the list. This is not to say that agriculture or industry have no role or future in Pakistan, far from it, but it does show how the services industry has latched on to the spending boom and catapulted itself to the top of the food-chain, literally.

The bulk of the companies on the list are oil marketing companies. I am not sure what to infer from this. The oil marketing companies here are big because we have a power demand or they are so big and still we have a power shortfall? This should really come as no surprise considering the fact that the services sector is the largest and fastest growing sector in the world economy, accounting for the largest share in total output and employment in most developed countries.

The value of services in world exports has increased Since then the trend has been even more acute. Over the last few decades, the structure of the Pakistan economy has experienced significant changes. An analysis shows that the share of agriculture has been declining gradually over time from Cross country data reveals that structural transformation of most countries has been multi-stage.

In the first stage of transformation, the decline in the share of the agriculture sector has been seen to be compensated by an almost equal increase in industry, whereas share of services sector has remained stagnant. In the second stage of economic growth, substitution has mostly taken place between industry and services while agriculture has remained constant.

This implies that the services sector has in most cases gained momentum at the expense of agriculture. In case of Pakistan, the share of services is increasing in all sectors of the economy. In fact, the growth rate of services sector is higher than the growth rate of agriculture and the industrial sector and it now accounts for one third of total employment.

It also provides essential inputs to the agriculture sector and the manufacturing sector. It is because of its strong linkages with other sectors of the economy that the growth of the services sector can be taken as an indicator of the strong potential for overall economic growth.

Growth of service sector

Published in The Express Tribune, December 24th, The services sector, which includes bars, restaurants and hotels, accounts for about three-quarters of the UK economy. Photograph: Alamy The UK economy has bounced back from a soft patch in the. For a clearer picture of the relative growth of manufacturing and services, the next chart illustrates just that: The cumulative growth of the two series, along with total nonfarm employment.

Reasons for growth of service sector 1. Reasons For Growth Of Services The growth of service industries can be traced to the economic development of society . China's services sector chalked its slowest growth in over a year last month as the volume of new orders dried up, a private survey showed, suggesting a further loss in economic momentum as a.

The Future of the Service Sector.

What is the 'Service Sector' Share via Email This article is over 4 months old The services sector, which includes bars, restaurants and hotels, accounts for about three-quarters of the UK economy. Alamy The UK economy has bounced back from a soft patch in the opening months ofaccording to a closely watched survey of the services sector that showed stronger than expected activity last month.

As of , the growth of the service sectors in China and the United States have seen a significant decline. Analysts are closely watching China over concerns that slugging demand trends in the country will affect economic growth globally.

contribution made by the services sector to employment growth, productivity and innovation, and to identify factors, institutions and policies that could enhance the growth prospects of this sector.

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