Bangladesh’s GDP growth drops to 3.69% in FY2025, lowest since pandemic

Despite a recovery from political unrest, the economy faltered in the fourth quarter, reflecting challenges in growth, says BBS

Bangladesh’s gross domestic product (GDP) has grown by just 3.69 percent in the fiscal year 2024-25, marking the lowest growth since the COVID-19 pandemic.

According to updated data from the Bangladesh Bureau of Statistics (BBS), this is the weakest growth since the 2019-2020 fiscal year, when GDP growth was 3.45 percent.

In contrast, the economy grew by 4.22 percent in the fiscal year 2023-24.

The BBS report, released on Thursday, shows that at current prices, the GDP size stood at Tk 14.4 trillion at the end of June 2025, up from Tk 13.18 trillion the previous year.

The fiscal year started with nationwide protests and unrest demanding a change in government, leading to blockades, clashes, and internet shutdowns that crippled economic activity, resulting in a sluggish 1.96 percent growth in the first quarter.

After the change of government, the interim administration stabilised the situation, which allowed the economy to pick up in the second quarter, with GDP growth rising to 4.48 percent. The third quarter showed further improvement, reaching 4.86 percent. However, the fourth quarter (April-June) saw a slowdown, with GDP growth dropping to 3.35 percent.

In the previous fiscal year, the first and second quarters had growth rates of 5.87 percent and 4.47 percent. The third quarter saw a 4.62 percent increase, but the final quarter reported a 2.14 percent growth.

According to BBS data, the industrial sector saw the highest growth of 4.10 percent in the fourth quarter, compared to just 1.08 percent in the same period of the previous year.

The agricultural and services sectors, however, saw slower growth. Agriculture grew by 3.01 percent, down from 4.11 percent last year, and services grew by 2.96 percent, down from 3.61 percent in the previous year.

The GDP at constant prices reached Tk 8.86 trillion, up from Tk 8.57 trillion the previous year.

The interim government, led by Muhammad Yunus, revised GDP growth targets, initially aiming for 5.25 percent but failing to meet even that. The government is now targeting a 5.5 percent GDP growth for the 2025-26 fiscal year, with hopes for gradual improvement in the coming years.