Bangladesh’s economy grew 4.14 per cent in fiscal 2025-26 compared to 3.49 per cent a year earlier, with GDP crossing $500 billion for the first time. It may not hit the government’s target of 5.5 per cent, but it is a welcome change after two tough years.
Remittances Carried the Load Overseas workers sent home a record $35.56 billion, up 17.3 per cent. That money feeds household spending, brings in dollars and has helped push reserves to about $34.7 billion.
Garment Sector: The Clothes held the line
Garments still formed the backbone, but it was a mixed year. Gross exports declined 1.64 per cent to $38.70 billion, but net earnings increased to $24.22 billion due to cheaper raw material imports. June saw exports rise by more than 21 per cent, and that recovery has continued into the new year.
Demand fueled by population
Bangladesh has about 170 million people and a deep pool of workers, and a big home market kept services and agriculture growing even as factories struggled.
It’s investment and industry that are the concern. Inflation remained elevated and large-scale manufacturing increased only 1.97 per cent. The lead is real, but it is based on money from abroad and on old strengths, not new investment.
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