Growth slips across key sectors
Bangladesh’s economic growth slowed sharply in the third quarter (January-March) of FY2025-26, with gross domestic product (GDP) expanding by 2.22 per cent, down from 4.53 per cent in the corresponding period of the previous fiscal year, according to the latest quarterly estimates released by the Bangladesh Bureau of Statistics (BBS).
The BBS published the quarterly GDP estimates for FY2025-26 on Saturday, indicating a continued moderation in economic activity after stronger growth in the first half of the fiscal year.
The economy grew by 4.96 per cent in the first quarter and 3.03 per cent in the second quarter of FY2025-26. In comparison, GDP growth stood at 3.91 per cent and 3.53 per cent in the first and second quarters, respectively, of FY2024-25.
At current prices, the size of the economy increased to Tk15.391 trillion in the third quarter, compared with Tk14.192 trillion in the same quarter a year earlier.
Agriculture loses momentum According to the BBS, growth in the agriculture sector at constant prices slowed to 1.74 per cent in the third quarter, from 4.61 percent in the corresponding quarter of FY2024-25.
The sector, however, posted comparatively stronger performance earlier in the fiscal year, recording growth of 2.11 per cent in the first quarter and 3.68 per cent in the second quarter. During the same periods of the previous fiscal year, agriculture expanded by -0.12 per cent and 1.90 per cent, respectively.
Industrial output contracts
The industrial sector contracted by 0.28 per cent in the third quarter, reversing the 3.33 per cent growth recorded in the corresponding period of the previous fiscal year.
Earlier in FY2025-26, industry grew by 6.82 per cent in the first quarter and 1.27 per cent in the second quarter. The sector had expanded by 4.80 per cent and 5.78 per cent, respectively, during the same quarters of FY2024-25.
Services sector growth moderates
Growth in the services sector also weakened, slowing to 3.52 per cent in the third quarter from 7.32 per cent a year earlier.
The sector recorded growth of 4.51 per cent in the first quarter and 4.45 per cent in the second quarter of FY2025-26. In the corresponding quarters of FY2024-25, services expanded by 4.49 per cent and 5.84 per cent, respectively.
The latest BBS data indicate that all three major sectors of the economy lost momentum during the third quarter, contributing to the overall slowdown in GDP growth despite a larger nominal size of the economy.
