The Asian Development Bank (ADB) has said that the Services contribution to economic growth has been higher in South Asia than in other sub regions of developing Asia. The Bank said that in India, the Maldives, Pakistan, and Sri Lanka, some 60 per cent of the growth in 2000-2010 came from services and 43 per cent Services’ share in the growth of manufacturing-oriented People’s Republic of China in 2000-2010. It said 34 per cent the share of the Asian labor force engaged in services. The services sector’s share of employment has grown by 10 to 20 percentage points in most countries in developing Asia in the past 2 decades. More than 50 per cent in 1990, services accounted for over half of employment in only two economies — Hong Kong, China and Singapore — but now this is the case for (in descending order) the Republic of Korea; the Maldives; Malaysia; Taipei,China; Kazakhstan; and the Philippines. “Less than one-fifth labor productivity in services in most Asian countries compared with productivity levels in OECD countries and some countries may take up to 30 years to reach the OECD benchmark,” the Bank said, adding that 10 per cent high-value modern services, such as ICT, finance, and professional business services, account for less than 10 per cent of Asia’s service economy, well below the 20 per cent to 25 per cent in advanced economies.
‘Services contribution to economic growth higher in South Asia’
