Bangladesh Economic Outlook
A fast-growing South Asian economy:
Bangladesh has been one of the fastest-growing economies in the world over the past two decades, with GDP growth averaging over 6% per year. This rapid expansion has been driven by a booming garment industry, strong remittance inflows, and rising domestic consumption. The country has made significant progress in reducing poverty, with a growing middle class and improving social indicators.
Garment industry as the backbone of exports:The ready-made garment (RMG) sector is the cornerstone of Bangladesh’s economy, accounting for more than 80% of total exports. Major brands worldwide source apparel from Bangladesh due to its competitive labor costs. However, the industry remains vulnerable to external shocks, including changes in global demand, supply chain disruptions, and compliance with labor and environmental standards.
Challenges in infrastructure and economic diversification:Despite strong growth, Bangladesh faces structural challenges, including inadequate infrastructure, energy shortages, and bureaucratic inefficiencies. While the government has been investing in megaprojects such as the Padma Bridge and metro rail in Dhaka, further improvements are needed to sustain long-term growth. Additionally, economic diversification beyond garments and remittances will be crucial to avoiding stagnation.
Bangladesh’s economic outlook:Bangladesh’s economic growth trajectory remains positive, with continued expansion expected in manufacturing, services, and infrastructure development. However, challenges such as inflationary pressures, financial sector weaknesses, and climate vulnerability pose risks. Strengthening governance, improving ease of doing business, and boosting investment in technology and skills development will be key to sustaining Bangladesh’s economic momentum.
Bangladesh's Macroeconomic Analysis:
Nominal GDP of USD 451 billion in 2024.
Nominal GDP of USD 451 billion in 2024.
GDP per capita of USD 2,623 compared to the global average of USD 10,589.
GDP per capita of USD 2,623 compared to the global average of USD 10,589.
Average real GDP growth of 6.2% over the last decade.
Average real GDP growth of 6.2% over the last decade.
Sector Analysis
In 2022, services accounted for 51.1% of overall GDP, manufacturing 22.3%, other industrial activity 15.6%, and agriculture 11.0%. Looking at GDP by expenditure, private consumption accounted for 68.6% of GDP in 2023, government consumption 5.7%, fixed investment 31.0%, and net exports -5.3%.International trade
In 2015, manufactured products made up 95.8% of total merchandise exports, mineral fuels 0.6%, food 2.7%, ores and metals 0.2% and agricultural raw materials 0.7%, with other categories accounting for 0.0% of the total. In the same period, manufactured products made up 63.5% of total merchandise imports, mineral fuels 10.9%, food 16.6%, ores and metals 2.7% and agricultural raw materials 6.4%, with other goods accounting for -0.1% of the total. Total exports were worth USD 47.10 billion in 2024, while total imports were USD 63.90 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 6.2% in the decade to 2024. To read more about GDP growth in Bangladesh, go to our dedicated page.
Fiscal policy
Bangladesh's fiscal deficit averaged 3.9% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 4.6% in the decade to 2023. For more information on Bangladesh's unemployment click here.
Inflation
Inflation averaged 6.5% in the decade to 2023. Go to our Bangladesh inflation page for extra insight.
Monetary Policy
Bangladesh's monetary policy rate ended 2024 at 10.00%, up from 7.25% a decade earlier. See our Bangladesh monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the taka weakened by 34.8% vs the U.S. dollar. For more info on the taka, click here.
Economic situation in Bangladesh
In the first quarter of FY 2025 (July 2024–September 2024), annual GDP growth came in at 6.1%. This remained below the 10-year pre-pandemic average of 6.6% but marked the best result in five quarters. Turning to Q2 FY 2025, the Central Bank hiked interest rates to a new record high and remittances rose less sharply, likely hurting domestic demand. Furthermore, political uncertainty likely knocked consumer and business sentiment. That said, a low base effect pushed up growth of goods exports to an over two-year high. Switching to the present quarter, in January, remittances growth fell to the lowest level since July, although inflation eased slightly in January–February from the prior quarter. Merchandise exports, meanwhile, continued to rise at a double-digit pace in January on a low base effect.Bangladesh Economic Forecasts
Projections out to 2034.40 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 12 expert analysts.
Want to get insight on the economic outlook for Bangladesh in the coming years? FocusEconomics collects projections out to 2034 on 40 economic indicators for Bangladesh from a panel of 12 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Bangladesh economy. To download a sample report on the Bangladesh's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.