Friday, 17 October, 2025
Bangladesh’s gross domestic product (GDP) grew by just 3.69 percent in the fiscal year 2024-25, marking the slowest pace of expansion since the COVID-19 pandemic, according to updated figures from the Bangladesh Bureau of Statistics (BBS).
This represents the weakest growth since 2019-20, when GDP increased by 3.45 percent, and is a decline from 4.22 percent growth in 2023-24.
Economists say the slowdown reflects a combination of domestic and global challenges, including rising inflation, tighter credit conditions, and weaker demand for exports. Key sectors such as manufacturing, textiles, and exports — which have traditionally been drivers of Bangladesh’s economic growth — experienced slower expansion compared with previous years.
The agriculture sector, a major source of employment, was also affected by erratic weather patterns and rising input costs, further contributing to the subdued growth. Meanwhile, the services sector, which accounts for a large share of GDP, faced slower growth due to reduced private consumption and constrained public spending.
Analysts warn that unless policy measures are taken to stimulate investment, support industries, and improve export competitiveness, the economy could continue to face headwinds in the coming fiscal year.
Despite the slowdown, Bangladesh’s economy remains on a moderate growth trajectory, and authorities say they are focusing on structural reforms, investment incentives, and export diversification to sustain long-term development.
The BBS report, released on Thursday, shows that at current prices, the GDP size stood at Tk 14.4 trillion at the end of June 2025, up from Tk 13.18 trillion the previous year.
The fiscal year started with nationwide protests and unrest demanding a change in government, leading to blockades, clashes, and internet shutdowns that crippled economic activity, resulting in a sluggish 1.96 percent growth in the first quarter.
After the change of government, the interim administration stabilised the situation, which allowed the economy to pick up in the second quarter, with GDP growth rising to 4.48 percent. The third quarter showed further improvement, reaching 4.86 percent. However, the fourth quarter (April-June) saw a slowdown, with GDP growth dropping to 3.35 percent.
In the previous fiscal year, the first and second quarters had growth rates of 5.87 percent and 4.47 percent. The third quarter saw a 4.62 percent increase, but the final quarter reported a 2.14 percent growth.
According to BBS data, the industrial sector saw the highest growth of 4.10 percent in the fourth quarter, compared to just 1.08 percent in the same period of the previous year.
The agricultural and services sectors, however, saw slower growth. Agriculture grew by 3.01 percent, down from 4.11 percent last year, and services grew by 2.96 percent, down from 3.61 percent in the previous year.
The GDP at constant prices reached Tk 8.86 trillion, up from Tk 8.57 trillion the previous year.
The interim government, led by Muhammad Yunus, revised GDP growth targets, initially aiming for 5.25 percent but failing to meet even that. The government is now targeting a 5.5 percent GDP growth for the 2025-26 fiscal year, with hopes for gradual improvement in the coming years.
Comments
Bangladesh’s gross domestic product (GDP) grew by just 3.69 percent in the fiscal year 2024-25, marking the slowest pace of expansion since the COVID-19 pandemic, according to updated figures from the Bangladesh Bureau of Statistics (BBS).
This represents the weakest growth since 2019-20, when GDP increased by 3.45 percent, and is a decline from 4.22 percent growth in 2023-24.
Economists say the slowdown reflects a combination of domestic and global challenges, including rising inflation, tighter credit conditions, and weaker demand for exports. Key sectors such as manufacturing, textiles, and exports — which have traditionally been drivers of Bangladesh’s economic growth — experienced slower expansion compared with previous years.
The agriculture sector, a major source of employment, was also affected by erratic weather patterns and rising input costs, further contributing to the subdued growth. Meanwhile, the services sector, which accounts for a large share of GDP, faced slower growth due to reduced private consumption and constrained public spending.
Analysts warn that unless policy measures are taken to stimulate investment, support industries, and improve export competitiveness, the economy could continue to face headwinds in the coming fiscal year.
Despite the slowdown, Bangladesh’s economy remains on a moderate growth trajectory, and authorities say they are focusing on structural reforms, investment incentives, and export diversification to sustain long-term development.
The BBS report, released on Thursday, shows that at current prices, the GDP size stood at Tk 14.4 trillion at the end of June 2025, up from Tk 13.18 trillion the previous year.
The fiscal year started with nationwide protests and unrest demanding a change in government, leading to blockades, clashes, and internet shutdowns that crippled economic activity, resulting in a sluggish 1.96 percent growth in the first quarter.
After the change of government, the interim administration stabilised the situation, which allowed the economy to pick up in the second quarter, with GDP growth rising to 4.48 percent. The third quarter showed further improvement, reaching 4.86 percent. However, the fourth quarter (April-June) saw a slowdown, with GDP growth dropping to 3.35 percent.
In the previous fiscal year, the first and second quarters had growth rates of 5.87 percent and 4.47 percent. The third quarter saw a 4.62 percent increase, but the final quarter reported a 2.14 percent growth.
According to BBS data, the industrial sector saw the highest growth of 4.10 percent in the fourth quarter, compared to just 1.08 percent in the same period of the previous year.
The agricultural and services sectors, however, saw slower growth. Agriculture grew by 3.01 percent, down from 4.11 percent last year, and services grew by 2.96 percent, down from 3.61 percent in the previous year.
The GDP at constant prices reached Tk 8.86 trillion, up from Tk 8.57 trillion the previous year.
The interim government, led by Muhammad Yunus, revised GDP growth targets, initially aiming for 5.25 percent but failing to meet even that. The government is now targeting a 5.5 percent GDP growth for the 2025-26 fiscal year, with hopes for gradual improvement in the coming years.
Comments
