Advertisement

Q1 GDP growth jumps to 4.5%

Q1 GDP growth jumps to 4.5%
Representational image: Collected
Advertisement
Advertisement

Bangladesh recorded a stronger economic showing at the start of the current fiscal year, with gross domestic product growth rising to 4.50 per cent in the first quarter of FY26 on a point-to-point basis at constant prices, according to provisional data.

The latest quarterly outcome marks a sharp improvement from the 2.58 per cent growth registered in the same quarter of FY25, signalling a tentative recovery supported mainly by industry, alongside improved performance in agriculture and services, according to the Bangladesh Bureau of Statistics (BBS).

Measured at current prices, GDP during the July–September quarter of FY26 is estimated at Tk13,853 billion, compared with Tk12,401 billion in the corresponding period of the previous fiscal year, reflecting a solid year-on-year expansion in nominal economic activity.

Quarterly estimates also place overall GDP growth for the full FY25 at 3.72 per cent at constant prices, based on aggregated quarterly data.

The BBS said the quarterly-based growth estimate does not fully align with the provisional annual GDP figure for FY25 prepared using yearly methodology.

Advertisement
Advertisement

The statistical agency said the gap would be reconciled through internationally accepted benchmarking techniques once the final annual national accounts for FY25 are completed, to ensure consistency between quarterly and annual estimates.

Agriculture returned to growth in the first quarter of FY26, expanding by 2.30 per cent at constant prices, reversing the 0.60 per cent contraction seen a year earlier.

The turnaround points to a degree of stabilisation in the rural economy, aided by better crop outcomes and gradual improvement in allied activities such as livestock and fisheries.

Related News

The recovery in agriculture is expected to ease pressure on rural incomes and contribute positively to food supply conditions.

Industry delivered the strongest contribution, recording 6.97 per cent growth in Q1 of FY26, almost doubling the 3.59 per cent expansion posted in the same quarter of FY25.

Economists see the acceleration in industrial output as the main driver of the higher GDP growth, reflecting firmer manufacturing activity, some easing of energy constraints and a modest revival in domestic demand.

Export-oriented manufacturing industries are believed to have played a significant role in lifting overall industrial performance.

The services sector also showed improvement, growing by 3.67 per cent in the first quarter of FY26, up from 2.96 per cent in the corresponding period a year earlier.

The pickup suggests a gradual rebound in trade, transport, communications and other service activities that had remained subdued amid weak consumption and broader economic uncertainty.

Overall, the stronger Q1 performance points to early signs of recovery across all major sectors at the start of the fiscal year.

Economists, however, caution that maintaining the momentum will depend on sustained policy support, macroeconomic stability and progress on structural reforms.

They also note that the figures remain provisional and subject to revision as more complete data are incorporated.

Even so, the first-quarter outcome offers a cautiously positive signal that economic growth is beginning to regain pace after a prolonged slowdown.

Follow TIMES on Google News

Get trusted updates and editor-picked stories in your feed.

Follow
Related News