Bangladesh economy grows 3.97% in FY25, lowest since pandemic-hit FY20
Bangladesh's gross domestic product (GDP) growth in fiscal 2024-25 (FY25) was 3.97 per cent, the lowest since the pandemic-hit FY20, provisional data from the Bangladesh Bureau of Statistics (BBS) revealed.
The FY25 GDP size was estimated at Tk 55.527 trillion (~$462 billion).
Bangladesh's GDP growth in FY25 was 3.97 per cent, the lowest since the pandemic-hit FY20, provisional official data revealed. The GDP size was estimated at $462 billion. The lower GDP growth aligns with earlier projections made by the IMF (3.76 per cent), the ADB (3.9 per cent) and the World Bank (3.3 per cent) for FY25. They cited persistent economic challenges as reasons for lower projections.
The economy has faced a significant slowdown in this fiscal, with agriculture, industry and services all recording slower growths of 1.79 per cent (3.30 per cent in FY24), 4.34 per cent (3.51 per cent in FY24) and 4.51 per cent respectively.
The government's initial FY25 GDP growth target was 6.75 per cent, which was revised later to 5.25 per cent.
The lower GDP growth aligns with earlier projections made by the International Monetary Fund (3.76 per cent), the Asian Development Bank (3.9 per cent) and the World Bank (3.3 per cent) for FY25. They cited persistent economic challenges as reasons for lower projections.
However, per capita income rose to $2,820 in this fiscal from $2,738 in FY24.
Meanwhile, the investment-to-GDP ratio in FY25 was 29.39 per cent, down from 30.7 per cent in the last fiscal.
Economists and policymakers cite several factors, including stubbornly high inflation and a large share of default loans with banks, contributing to this situation, according to a domestic media outlet.
Moreover, a general climate of uncertainty, coupled with tighter monetary and fiscal policies, has dampened investment sentiment, which is evident in the slower growth of private sector credit.
Disruptions in supply chains and import restrictions have weakened industrial activities and contributed to price pressures as well.
The lower GDP growth is expected to further erode real incomes and suppress consumption, particularly among low-income groups, potentially pushing more people into extreme poverty. It translates into fewer employment opportunities as well.
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