Bangladesh's economy has crossed the half-a-trillion-dollar mark for the first time in fiscal year 2025-26, as the government led by Prime Minister Tarique Rahman prepares to present its inaugural budget on Thursday. The Bangladesh Bureau of Statistics (BBS) announced on Wednesday that the South Asian nation's economy now stands at USD 501 billion, up from USD 456 billion in the previous fiscal year.
Economic Growth Shows Moderate Recovery
The BBS data indicates a moderate recovery in economic growth. The economy expanded by 4.14 percent in the current fiscal year, compared to 3.49 percent in the prior year. Bangladesh follows a fiscal year from July 1 to June 30.
Per capita gross national income has surpassed the USD 3,000 threshold for the first time, reaching USD 3,020 in FY2025-26. This represents an increase of USD 251, or 9.1 percent, from the revised estimate of USD 2,769 in FY2024-25.
Budget Presentation and Expert Concerns
The report comes as Finance and Planning Minister Amir Khasru Mahmud Chowdhury is set to present the national budget for FY27 in parliament on Thursday. Several economists and financial analysts have urged the government to prioritize economic stabilization and recovery over ambitious growth targets. They argue that recovery must precede expansion by addressing structural weaknesses before pursuing growth figures.
Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue, was quoted by the private UNB news agency as saying, "Bangladesh's economy has reached a point where stabilisation must come before growth." He emphasized the need to rethink the banking system, investment infrastructure, and port management to stabilize the economy.
International Assessments and Sectoral Performance
The World Bank and International Monetary Fund, in their 2026 assessments, noted that Bangladesh faces high inflation, weak revenue mobilization, a distressed banking sector, and volatile private investment. They called for a long-term structural reform plan.
According to BBS sector-wise data, the agriculture sector grew by 2.78 percent, maintaining positive momentum. However, the industrial sector's growth was estimated at 2.86 percent, down from 3.71 percent in the previous year. The services sector recorded a modest improvement, with growth rising to 4.59 percent from 4.35 percent.
Despite the increase in overall GDP growth, both investment and savings ratios declined. Economists warn that this decline, despite higher GDP growth, signals underlying vulnerabilities in the economy and could affect long-term growth momentum.
