Bangladesh enters $500b GDP club for first time
The size of the economy at current prices stood at Tk61,20,209 crore - approximately $501 billion - in FY26, up from Tk55,15,026 crore, or $456 billion, in FY25, according to BBS.
Bangladesh's economy has crossed a major milestone, with gross domestic product surpassing the $500 billion mark for the first time, according to provisional estimates released by the Bangladesh Bureau of Statistics today (10 June).
The latest data show that the country's GDP at current prices reached $501 billion in fiscal year 2025-26, placing the country in the half-trillion-dollar economy club. The economy was valued at $456 billion in FY25.
In local currency terms, the size of the total GDP stood at Tk61.2 trillion during the fiscal year.
The milestone comes after several years of economic challenges, including external shocks, elevated inflationary pressures and the continued depreciation of the taka against the US dollar.
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Economists say the latest figures indicate that the economy is gradually regaining momentum despite lingering structural weaknesses.
According to the BBS, GDP growth rose to 4.14% in FY26 from 3.49% in the previous fiscal year. Per capita gross national income also crossed a significant threshold, rising by $251 to reach $3,020 for the first time.
Investment and savings indicators weakened during the year. The investment-to-GDP ratio declined to 27.93% from 28.54% a year earlier. Domestic savings fell to 21.38% of GDP, while national savings dropped to 26.93%.
Despite the increase in GDP growth, lower levels of investment and savings suggest that significant challenges remain for the economy.
Sector-wise performance showed that agriculture and services supported overall growth, while industry lost momentum.
The industrial sector recorded growth of 2.86%, down from 3.71% in FY25, largely due to a slowdown in manufacturing. Contributions from large, medium, small and cottage industries all declined.
Although the services sector expanded at a slightly faster pace, contributions from wholesale and retail trade, real estate, accommodation and food services, and financial and insurance activities weakened.
Dr AK Enamul Haque, director general of the Bangladesh Institute of Development Studies, said the 4.14% growth rate reflected a slowdown in economic activity.
He attributed the weaker momentum to post-election uncertainty, sluggish investment and broader economic pressures, noting that many entrepreneurs remain in a wait-and-see mode regarding new investments.
"The decline in industrial growth is a concern," he said, adding that prolonged Eid holidays and disruptions to production also contributed to the sector's weak performance.
Enamul noted that the final growth figure could change, as complete agricultural data, including major seasonal crops, have yet to be incorporated into the estimates.
He said despite the challenges the expansion of GDP to $501 billion signals continued economic growth and could support further job creation. Preliminary indicators suggest a gradual improvement in urban labour markets.
Looking ahead, he said the upcoming budget would be crucial in restoring economic momentum through investment-friendly policies.
Sayema Haque Bidisha, an economics teacher at Dhaka University, said, "An increase in the size of GDP and per capita income is certainly a positive development. It indicates that the economy is gradually recovering. However, we should not focus solely on the size of growth; we must also examine how widely the benefits of that growth are being distributed."
She added that political and economic stability play a crucial role in attracting investment, as investors generally seek environments that offer stability and predictability.
Sayema Haque noted that expecting very high growth in the agricultural sector is not realistic because the sector operates within natural constraints.
Expressing particular concern over the slowdown in industrial growth, especially in the manufacturing sector, she said, "For a country's structural economic transformation, the manufacturing sector is extremely important. A significant share of future growth is expected to come from this sector. Therefore, a slowdown in manufacturing growth should serve as a warning sign for us."
The economics teacher further noted that the sluggish pace of private-sector investment and the negative trend in manufacturing deserve serious attention from policymakers, as these sectors serve as the primary driving forces of the economy.
She said future policymaking should prioritise forms of growth that generate employment opportunities and help reduce income inequality.
Meanwhile, Dr M Masrur Reaz, chairman of Policy Exchange Bangladesh, described the country's entry into the half-trillion-dollar GDP club as a significant milestone achieved through decades of economic progress.
He said that governance weaknesses had prevented the economy from achieving even stronger growth.
While agriculture and services continue to contribute positively, the weakness in manufacturing remains a key risk for a labour-intensive economy, Masrur said.
To sustain the momentum and eventually move toward a trillion-dollar economy, he said Bangladesh would need to redefine its growth drivers and undertake major reforms in trade, investment and revenue administration.
