Bangladesh is now a half-trillion-dollar economy, as its gross domestic product (GDP) has crossed USD 500 billion mark.
It has achieved this unique feat in the outgoing fiscal year (FY) 2025-26, marking a significant step towards its ambition of becoming a $1.0-trillion economy by 2034.
At the same time, the country's gross domestic product (GDP) growth at constant prices expanded by 4.14 per cent, recovering from the low 3.49 per cent recorded in FY2024-25, according to Bangladesh Bureau of Statistics (BBS) data unveiled on Wednesday.
Per capita gross national income (GNI) has also crossed the $3,000 mark, with the BBS estimating average income at $3,020 in FY2025-26.
Provisional data released by the BBS revealed that the total size of the economy at current prices surged to $501.067 billion (Tk 61.202 trillion) in FY2025-26.
This marks a substantial leap from the $456 billion economy recorded in FY2024-25.
Meanwhile, the estimated economic growth of 4.14 per cent is well below the government's GDP growth target of 5.5 per cent for the current fiscal year.
Earlier, several multilateral development partners, including the International Monetary Fund (IMF), projected Bangladesh's GDP growth at 4.7 per cent, while the World Bank forecast 3.9 per cent and the Asian Development Bank (ADB) 4.0 per cent.
According to the BBS, the breakthrough into the $500-billion-plus club comes as a major boost to national economic ambitions, supported by stronger growth in the agriculture and services sectors.
The BBS showed that although GDP growth in the industrial sector slowed in FY2025-26 compared with FY2024-25, growth in the agriculture and services sectors improved in the latest estimates.
According to the official data, GDP growth in the agriculture sector was estimated at 2.78 per cent, 0.36 percentage points higher than the 2.42 per cent recorded in the previous fiscal year.
Similarly, the services sector achieved GDP growth of 4.59 per cent in FY2025-26, up from 4.35 per cent in FY2024-25.
On the other hand, GDP growth in the industrial sector slowed to 2.86 per cent, 0.85 percentage points lower than the 3.71 per cent recorded in FY2024-25, the BBS data showed.
The milestone provides a critical foundation for the government's key election pledge of transforming Bangladesh into a $1.0-trillion economy.
While the ultimate goal is to reach the trillion-dollar mark, crossing the halfway point ahead of the next decade validates the nation's long-term macroeconomic expansion plans.
Top policy strategists note that reaching $501 billion establishes the financial momentum needed to achieve future industrial and digital development goals.
A senior General Economics Division (GED) official told The Financial Express that economic growth and sectoral performance, driven largely by robust domestic production and consumer activity, helped the economy expand by 4.14 per cent in FY2025-26.
This outpaced the 3.49 per cent growth rate recorded in the previous fiscal year, signalling a steady post-inflation recovery.
The industrial and manufacturing sectors faced global headwinds, with growth slowing to 2.86 per cent due to subdued export demand.
Reflecting the expanding economy, citizens also experienced a notable increase in income levels.
Bangladesh's per capita income climbed to $3,020 in FY2025-26, reinforcing the country's position as a rising middle-income economy in South Asia.
BBS officials indicated that final data validation would be completed by the end of the fiscal year on June 30.
With the half-trillion-dollar milestone firmly secured, the focus now shifts to implementing structural reforms to unlock the next half-trillion dollars over the coming years.
Policy Exchange Bangladesh Chairman Dr M Masrur Reaz told the FE that the achievement was indeed good news for Bangladesh.
He said the government should not become complacent but instead focus on attracting more private investment and creating jobs.
Given higher inflationary pressures, sluggish investment growth, weak employment opportunities and external shocks, the government needs innovative policies and reforms to attract private-sector investment, boost exports and generate employment, Dr Reaz added.
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