Bangladesh GDP growth halves to 2.2% in Q3 as industrial sector contracts

The sharp deceleration underscores deepening structural headwinds, widening the gap between official targets and on-the-ground economic reality.

By Handelsavisen Newsroom · Automated 2026-07-20 13:20 UTC · 1 min read

Bangladesh’s economy expanded by just 2.22% in the January-March quarter of fiscal year 2025-26, a stark deceleration that represents roughly half the growth rate recorded in the same period a year earlier.

The contraction was driven primarily by a downturn in the industrial sector, which failed to provide the momentum needed to sustain broader economic activity.

1% for the upcoming fiscal year, a figure that already fell short of the government’s official target of 6.

This quarterly figure marks the lowest growth reading since the fourth quarter of the previous fiscal year, signaling a persistent slowdown in the South Asian economy.

The data highlights a significant divergence between official projections and actual performance.

Bangladesh Bank had previously issued a GDP growth projection of 6.1% for the upcoming fiscal year, a figure that already fell short of the government’s official target of 6.5%.

The latest quarterly print suggests that achieving even the central bank’s revised estimate will require a substantial and unlikely rebound in industrial output and consumer demand in the coming quarters.