Staff Reporter :
Bangladesh’s economy expanded by 3.35% in the fourth quarter of the 2024-25 fiscal year (FY25) at constant prices, up from 2.14% in the same period of the previous fiscal year, according to data released Thursday by the Bangladesh Bureau of Statistics (BBS).
BBS data indicate that growth in the first three quarters of FY25 stood at 1.96%, 4.48%, and 4.86%, compared to 5.87%, 4.47%, and 4.62% in FY24. Taken together, GDP growth for FY25 at constant prices reached 3.69%.
Provisional estimates put the GDP at current prices for Q4 FY25 at Tk14.4 lakh crore, up from Tk13.2 lakh crore in Q4 FY24.
The agriculture sector grew 3.01% in Q4 FY25, down from 4.11% in the same quarter of FY24. Growth in agriculture during the first three quarters of FY25 was 0.76%, 1.25%, and 2.42%, compared to 0.62%, 4.09%, and 4.02% in FY24.
Meanwhile, the industrial sector showed the strongest rebound, expanding 4.10% in Q4 FY25 compared to 1.08% a year earlier. Growth in the first three quarters of FY25 was 2.44%, 7.10%, and 6.91%, against 7.78%, 1.04%, and 4.55% in FY24.
The services sector grew 2.96% in Q4 FY25, down from 3.61% in Q4 FY24. During the first three quarters, the sector recorded growth of 2.41%, 3.78%, and 5.88%, compared to 5.52%, 7.10%, and 4.31% in FY24. “FY25 Was a Challenging Year for the Economy”
Speaking to The Business Standard, Zahid Hussain, former lead economist at the World Bank’s Dhaka office, said the overall data point to a slower full-year growth rate than in recent years.
“Earlier, the annual growth rate was projected at 3.97%, but based on the latest figures, it appears unlikely to reach that level,” he noted, adding that this would mark the lowest post-Covid growth, although slightly better than the Covid-affected year of 2020.
Hussain described FY25 as “a catastrophic year” for the economy.
“Political instability, violence, unrest, and uncertainty directly impacted economic activity,” he said. “Just as Covid posed health risks and restricted movement, this year’s street violence and insecurity severely disrupted business, trade, transport, and services.”
He added that the transport, wholesale, and retail sectors were hit hardest due to persistent political turmoil.
“The industrial sector’s weakness was largely due to a slowdown in export-oriented industries, whereas agriculture performed relatively better, recording 3.01% growth, supported by a strong Boro harvest,” Hussain explained.
“Overall, the sluggish GDP growth this year reflects the combined effects of political instability, uncertainty, and disruptions across the economy,” he concluded.
