Bangladesh’s economy has crossed the $500 billion threshold for the first time, reaching a historic milestone in fiscal year 2025-26 as stronger performances in agriculture and services helped boost overall economic growth.
According to provisional estimates released by the Bangladesh Bureau of Statistics (BBS) on Wednesday, the country’s Gross Domestic Product (GDP) rose to $501 billion in the current fiscal year, up significantly from $456 billion recorded in FY25.
The latest figures show that the economy expanded by 4.14 per cent during FY26, improving from the 3.49 per cent growth registered in the previous fiscal year. The data suggest that Bangladesh’s economic momentum strengthened despite persistent inflationary pressures and a slowdown in parts of the industrial sector.
The agriculture sector played a key role in supporting growth, expanding by 2.78 per cent compared with 2.42 per cent a year earlier. Increased agricultural output contributed to overall economic activity and helped offset weaknesses in other sectors.
The services sector also recorded stronger performance, growing 4.59 per cent in FY26, up from 4.35 per cent in FY25. The sector remained one of the principal drivers of economic expansion, reflecting continued activity in trade, transport, communications, finance and other service-related industries.
In contrast, manufacturing growth weakened during the fiscal year. Production in the sector increased by 2.86 per cent, down from 3.71 per cent in the previous year.
Economists attribute the slowdown to weaker export demand and subdued domestic consumption amid continued inflationary pressures that affected household spending and business activity.
The provisional growth estimate exceeded expectations from several international institutions. Earlier forecasts by the International Monetary Fund and other multilateral agencies had projected Bangladesh’s economic growth would remain below 4 per cent during FY26.
The latest BBS figures therefore indicate a stronger-than-anticipated performance, with the economy not only accelerating from the previous year but also reaching the symbolic half-trillion-dollar mark for the first time in the country’s history.
