ADB forecasts 4% growth for Bangladesh in FY25, 5% in FY26

Bangladesh’s economy is estimated to grow by 4.0% in Fiscal Year (FY) 2025, rising to 5.0% in FY2026, according to the Asian Development Outlook (ADO) September 2025, released today by the Asian Development Bank (ADB). Although garment exports remain resilient, the slower growth estimate reflects subdued domestic demand amid ongoing political transitions, recurrent flooding, industrial labor disputes and persistently high inflation. The economy expanded by 4.2% in FY2024. ADB Country Director for Bangladesh Hoe Yun Jeong said future growth will depend on improving the business environment to boost competitiveness and attract investment, and on ensuring reliable energy supplies. “The impact of US tariffs on Bangladesh’s trade remains to be seen, and vulnerabilities in the banking sector persist. Addressing these challenges...