Bangladesh’s economic growth projected at 4% in FY25, rises to 5% in FY26: ADB

Bangladesh’s economy is projected to expand by 4.0% in fiscal year (FY) 2025 and accelerate to 5.0% in FY2026, according to the Asian Development Outlook (ADO) September 2025, released Tuesday by the Asian Development Bank (ADB).The modest growth forecast for FY2025 reflects subdued domestic demand amid ongoing political transitions, recurrent flooding, industrial labor disputes, and persistently high inflation, despite resilience in garment exports. The economy had expanded by 4.2% in FY2024.Future growth will depend on improving the business environment to boost competitiveness and attract investment, and on ensuring reliable energy supplies, said Hoe Yun Jeong, ADB Country Director for Bangladesh.The impact of US tariffs on Bangladesh’s trade remains to be seen, and vulnerabilities in the banking sector persist. Addressing these challenges is essential to achieving higher economic performance, he added.ADB noted that downside risks to the FY2026 outlook persist, including trade uncertainties, banking sector weaknesses, and potential policy slippages.Maintaining prudent ...

• 30 Sep 2025