DHAKA, Dec 8, 2025 (BSS) - The last six months of FY2025 have shown promising signs of a rebound in economic activity in Bangladesh.

This was highlighted in the Bangladesh State of the Economy 2025 report released today by the General Economics Division (GED) of the Planning Commission.

The report was launched at an event held at the NEC Conference Room in the city’s Sher-e-Bangla Nagar.

It said that although various forecasts projected slower growth, key indicators now point to a gradual recovery.

According to the report, major development partners expect Bangladesh’s GDP growth for FY2025 to remain lower than previous years. 

The World Bank projects growth between 3.3% and 4.1%, while the Asian Development Bank (ADB) forecasts 3.9%. However, the economy is expected to accelerate in FY2026, with growth rising to 5.1%–5.3%.

The report highlights notable stability in Bangladesh’s external sector. Strong remittance inflows, import stabilization, and a rebound in capital machinery imports signal strengthening domestic demand and renewed investor confidence. 

Export earnings remained robust, supported by the RMG sector’s enhanced competitiveness through compliance upgrades and market diversification. Foreign exchange reserves have stabilized at levels covering more than three months of imports, reflecting prudent macroeconomic management.

The report notes that revenue mobilization in June was severely disrupted due to the work stoppage by NBR officials over a decision to separate the NBR into two divisions. The situation later normalized as the protest was withdrawn and revenue collection resumed.

The GED stresses that controlling inflation, restoring investor confidence, and stabilizing the financial sector will be essential for achieving stronger growth in FY2025–26. While many forecasts anticipate a rebound, the report notes that the extent to which growth translates into job creation, poverty reduction, and improved living standards will depend heavily on effective policy action, stronger financial sector governance, and inclusive development strategies.

GED notes that weak private investment and industrial activity have been identified as major constraints on growth. Conversely, remittance inflows, export performance, and manufacturing sector output—particularly in the ready-made garments (RMG) industry—have served as key drivers of growth and are expected to continue playing a strong role in FY2026.

However, Bangladesh faces several pressing challenges, including limited reserves, strained investor confidence, shifting buyer preferences, and the risks posed by global trade tensions and geopolitical uncertainty. 

The GED report underscores that Bangladesh stands at a critical juncture. Addressing the needs of a large and growing labor force, strengthening manufacturing—especially garments and SMEs—boosting remittances, and investing in human capital should be national priorities. 

Failure to tackle emerging vulnerabilities—particularly inflation, financial sector fragility, a weak investment climate, governance challenges, and external risks—could lead to slower growth, declining living standards, rising poverty, and growing inequality.

On the other hand, with timely and coherent policy reforms, strengthened institutions, and clearer policy communication, Bangladesh has a strong opportunity to regain momentum and ensure more inclusive growth. 

The GED concludes that a well-formulated national strategy for sustainable development, supported by structural reforms and an innovation-driven economic orientation, should guide future development planning to enhance resilience and long-term economic strength.