Bangladesh economy crosses half-a-trillion-dollar mark

Bangladesh's economy has surpassed the half-a-trillion-dollar mark for the first time in fiscal year 2025-26, as the Prime Minister Tarique Rahman-led government is set to present its first budget on Thursday.

The Bangladesh Bureau of Statistics (BBS) on Wednesday said that the South Asian nation's economy currently stood at USD 501 billion, up from USD 456 billion a year ago.

The BBS data also indicated a moderate recovery in economic growth. The economy grew by 4.14 per cent in the current fiscal year, up from 3.49 per cent in the previous year.



Bangladesh calculates its fiscal year from July 1 to June 30 of the following calendar year.

The bureau also said that Bangladesh's per capita gross national income has surpassed the USD 3,000 mark for the first time, reaching USD 3,020 in fiscal year 2025-26.

The figure represents an increase of USD 251, or 9.1 per cent, from the revised estimate of USD 2,769 in FY2024-25.

The report came as Finance and Planning Minister Amir Khasru Mahmud Chowdhury is set to place the national budget for FY27 in parliament on Thursday.

Several economists and financial analysts asked the government to prioritise economic stabilisation and recovery over ambitious growth targets, arguing that recovery must come before expansion by addressing structural weaknesses before chasing growth figures.

"Bangladesh's economy has reached a point where stabilisation must come before growth," leading think-tank Centre for Policy Dialogue's distinguished fellow Mustafizur Rahman was quoted as saying by private UNB news agency.

He said the country needed to rethink the banking system, investment infrastructure, and port management to stabilise the economy.

The World Bank and International Monetary Fund, in their 2026 assessments, said that Bangladesh was exposed to high inflation, weak revenue mobilisation, a distressed banking sector, and volatile private investment, while they called for a long-term structural reform plan.

According to BBS, sector-wise data, the agriculture sector rose to 2.78 per cent, maintaining a positive momentum during the outgoing fiscal, but the industrial sector growth was estimated at 2.86 per cent, down from 3.71 per cent in the previous year.

The services sector recorded a modest improvement, with growth rising to 4.59 per cent from 4.35 per cent in the previous fiscal.

But despite the increase in overall GDP growth, both investment and savings ratios declined.

According to economists, the decline in investment and savings despite higher GDP growth signals underlying vulnerabilities in the economy, and it could affect long-term growth momentum.
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