Economy experiences liftoff on growth leaps in pivotal sectors

Bangladesh's turmoil-tossed economy shows significant signs of recovery with the July-September fiscal quarter showing a liftoff from a miasma over the last couple of years, analysts say, based on latest statistics.

The economy got a boost with the gross domestic product (GDP) having grown at a rate of 4.50 per cent in the first quarter (July-September) of the current fiscal (FY) 2025-26, according to Bangladesh Bureau of Statistics (BBS) data released Tuesday.

This marks a notable improvement from the sluggish 1.81-percent growth during the same period in the previous fiscal year (FY2024-25) -- the time of a political turmoil that toppled the reigning regime.

Also, it has almost doubled over the immediate-previous quarter or Q4 of the last FY when the GDP growth was projected at 2.47 per cent,

A senior BBS official told The Financial Express that the economic growth during July 2025-September 2025 (Q1) of the current FY2026 gained momentum as the country's all three broad sectors -- agriculture, industry, and services -- performed better.

"The BBS data indicate that the nation is gradually overcoming the economic stagnation caused by the political and social transitions of the preceding year," he says.

The industrial sector boasted a big jump as the GDP expanded there at 6.97 per cent in Q1 of the current fiscal year compared to 3.59 per cent in the same period of FY2025.

Similarly, the largest job-absorbing agriculture sector also rebounded with a 2.30-percent growth in the first quarter this fiscal from a minus 0.60-percent rate in the same period last FY2025, BBS data show.

Meanwhile, another broad contributor -- services sector -- grew by 3.67 per cent rate, up from 2.96 per cent in the corresponding quarter.

The provisional estimates show a mixed performance across different sectors and subsectors of the economy -- in the wake of domestic and external adversities.

The construction sector emerged as a major driver of growth, surging to 12.41 per cent in Q1 FY2026.

This marks a "dramatic turnaround" from the 1.90-percent growth recorded in Q1 FY2025, signaling a revival in infrastructure projects and private real-estate investment.

Wholesale and retail trade grew by 4.59 per cent and the financial and insurance activities saw a modest growth of 0.55 per cent, the BBS statistics showed Tuesday.

In contrast to the overall recovery, utilities sectors like electricity, gas, and water supply faced a significant slump, contracting by 10.70 per cent. This follows a period of volatility in the energy sector besides supply-chain challenges.

Analysts say the 4.50-percent growth rate suggests that the "stuttered" economy of 2024 is regaining its footing.

They point out that the base effect -- following the extremely low growth of 1.81 per cent in 2024 -- helped boost this year's percentage, but the double-digit growth in construction indicates a genuine return of industrial activity.

The BBS has published quarterly GDP data since the 2023-24 fiscal year to provide policymakers with real-time insights into the country's economic health.

This latest report will be a key benchmark for the government as it prepares for the remainder of the fiscal year, with a focus on stabilising inflation and boosting foreign direct investment.