GDP growth slows sharply in Q4, FY25 as industrial, services sectors falter

Bangladesh's economic growth slowed sharply in the final quarter of the last fiscal year (FY2024-25), as a steep downturn in industrial-and service-sector activities dragged overall performance, according to official figures released on Thursday.

Data from the Bangladesh Bureau of Statistics (BBS) show that GDP growth at constant prices slipped to 3.35 per cent in the April-June quarter (Q4), compared to 4.86 per cent in Q3 and 4.48 per cent in Q2.

The economy had shown signs of recovery in the middle of the fiscal year but lost momentum again as business and public life were disrupted by prolonged street protests.

Analysts said that even a strong rebound in agriculture could not offset the slump in the country's two key growth engines - industry and services - underscoring the fragility of Bangladesh's economic recovery amid political uncertainty.

Although the quarterly GDP growth had dipped sharply in Q1 (July-September) of FY25, it rebounded in the following two quarters before slowing again in the final quarter.

During the same period of the previous fiscal year (FY2023-24), Bangladesh's economy grew by 2.14 per cent, indicating that while annual growth improved slightly, momentum weakened toward the end of FY25.

Earlier provisional estimates from the BBS suggested that the country achieved an overall GDP growth of 3.97 per cent in FY25.

Analysts noted that strong performance in the agriculture sector could not lift overall growth, as both the industrial and service sectors experienced a marked slowdown in the April-June quarter.

Industrial sector growth declined to 4.10 per cent in Q4, compared to 6.91 per cent in Q3. Similarly, service sector growth fell sharply to 2.96 per cent, from 5.88 per cent in the previous quarter, the BBS data show.

The agriculture sector, by contrast, recorded its best performance of the fiscal year, expanding by 3.01 per cent in Q4 - the highest among all four quarters.

Economists attributed the slowdown in GDP growth to prolonged street protests and political unrest that disrupted business and transport activities.

Various groups, professionals, and garment workers held demonstrations in Dhaka and other cities to press demands to the Prof Yunus-led interim government following the fall of Sheikh Hasina's regime on August 5 last year.

These protests, analysts said, significantly curtailed economic activity during the final quarter.

According to the BBS, Bangladesh's total GDP at current prices was estimated at Tk 14.40 trillion, while at constant prices it stood at Tk 8.86 trillion in FY2024-25.