Bangladesh Economic Outlook 2025: Growth Amid Challenges
Bangladesh's economy is projected to grow at 3.9% in FY2025 before rebounding to 5.1% in FY2026, according to the Asian Development Bank's latest report.
Bangladesh Economic Outlook 2025: Growth Amid Challenges
Bangladesh's economy is navigating through a complex landscape in 2025, with projected growth of 3.9% in the current fiscal year before an expected rebound to 5.1% in FY2026, according to the Asian Development Bank (ADB).
Economic Indicators
The ADB's April 2025 report highlights several key economic indicators:
- GDP Growth: 3.9% (FY2025), rising to 5.1% (FY2026)
- Inflation: Projected to exceed 10% in 2025
- External Account: Improved balance in July-August FY2025-26 period
- Key Drivers: Increased exports and remittance inflows
Political Developments
The year 2025 has seen significant political shifts in Bangladesh:
Interim Government Actions: On May 10, the interim government imposed a ban on Awami League activities, marking a significant political development.
Judicial Reforms: In January, the Supreme Court overturned the 2018 graft conviction of former Prime Minister Khaleda Zia, relating to an orphanage trust case.
Data Protection: The Advisory Council recently approved the Personal Data Protection Ordinance, 2025, enhancing digital rights and making tech companies accountable for handling Bangladeshi citizens' data.
Regional Relations
Bangladesh is actively reshaping its regional partnerships:
Pakistan Relations: After a 15-year hiatus, Bangladesh-Pakistan diplomatic talks resumed on April 17, 2025. Pakistan is intensifying outreach as regional power dynamics shift, seeking new economic and strategic partnerships.
Looking Ahead
While facing near-term challenges including elevated inflation and political transitions, Bangladesh's economic fundamentals show resilience. The improvement in external accounts through stronger exports and remittances provides a solid foundation for the projected growth recovery in FY2026.
The implementation of modern data protection laws and renewed regional diplomacy signal Bangladesh's commitment to both digital transformation and strategic positioning in South Asia's evolving landscape.
Sources: Asian Development Bank, Al Jazeera, PBS News, Human Rights Watch