Bangladesh’s economy expanded by 4.5% in the first quarter of the current fiscal year (FY26), supported by moderate growth across the agriculture, industry and services sectors, official data shows.
According to figures released by the Bangladesh Bureau of Statistics (BBS), economic growth during the July–September period improved significantly compared with the same quarter of the previous fiscal year.
In the first quarter of FY25, the economy grew by 2.58%, reflecting weaker momentum across major sectors at that time.
Industry leads growth
Industrial activity recorded the strongest performance in the first quarter of FY26. Output in the industrial sector rose by 6.97%, nearly double the 3.59% growth recorded during the same period a year earlier.
Economists say stronger industrial output suggests a gradual recovery in manufacturing and related activities, which play a key role in employment and exports.
The services sector, which accounts for more than half of Bangladesh’s economy, grew by 3.67% in the first quarter of FY26. This compares with 2.96% growth in the same quarter of FY25.
The sector includes trade, transport, communications, finance and other services that are closely linked to domestic demand and overall economic activity.
Agriculture growth remains modest
Growth in the agriculture sector remained relatively slow. BBS data shows agricultural output increased by 2.30% during the July–September period of FY26, slightly higher than the growth recorded in the corresponding quarter of the previous year.
Agriculture continues to employ a large share of the population, but its contribution to overall GDP growth has been more limited compared with industry and services.
Revised FY25 figures
BBS revised estimates show that economic growth in FY25 varied across quarters. Growth stood at 2.58% in the first quarter, 4.44% in the second, 5.33% in the third, and 2.47% in the fourth quarter.
At constant prices, Bangladesh’s overall GDP growth rate for FY25 was revised to 3.72%, lower than earlier expectations amid domestic and global economic challenges.
Economists say the stronger first-quarter performance in FY26 points to a gradual improvement in economic activity, though they caution that sustained growth will depend on stability in energy supplies, inflation control and global economic conditions.
The government has said it remains focused on supporting growth while managing inflationary pressures and fiscal challenges.
