Bangladesh”s economic growth slowed in the 2024-25 fiscal year, with the country”s Gross Domestic Product (GDP) expanding by just 3.49%, according to the final data released by the Bangladesh Bureau of Statistics (BBS). This marks a decline from the preliminary estimate of 3.97% and is lower than the 4.22% growth recorded in 2023-24.
The slowdown in GDP growth comes amid a transitional period in government. The Awami League government was in power until August 5, 2024, and the interim government assumed office on August 8. Despite the change in leadership, the final GDP growth fell short of the interim government”s revised target of 5.25%, set after the political unrest in July-August 2024.
Dr. Enayet Karim, a globally renowned financial expert, told The Daily Industry, “Bangladesh”s economic growth is under stress due to political uncertainty and industrial disruptions. While short-term protests and factory closures may have contributed, the structural issues in investment and industrial policy have compounded the slowdown.”
According to BBS, the nominal GDP for 2024-25 reached $456 billion, approximately BDT 5,515,026 crore. The three largest sectors recorded mixed performances: agriculture grew by 2.42% (down from 3.30% in 2023-24), industry by 3.71% (up from 3.51%), and services by 4.35% (down from 5.09%). The overall investment-to-GDP ratio fell to 28.54% from 30.70% the previous year, while domestic and national savings ratios also declined slightly.
Per Capita Income Sees Marginal Rise: Despite slower growth, per capita income increased by $33, reaching $2,802 in 2024-25, compared to $2,769 in 2023-24.
Dr. Karim added, “Per capita gains are positive, but they mask underlying challenges. The slowdown in services and agriculture could undermine long-term growth potential, particularly if investment remains weak and industrial policy does not address productivity constraints.”
Expert Recommendations:Prioritize investment-friendly policies to boost industrial growth.Strengthen service sector competitiveness.Improve agricultural productivity through technological adoption.Stabilize political and policy environment to encourage domestic and foreign investment.
