New Delhi, July 21 (IANS) Bangladesh’s economic growth slowed sharply in the third quarter of FY26, with GDP expansion at 2.22 per cent, down from 4.53 per cent in the corresponding period in previous year, a report has said.
The report from Bangladesh-based The Financial Express said the slowdown was driven largely by a contraction in the industrial sector, which recorded -0.28 per cent growth, compared with 3.33 per cent a year earlier.
The Bangladesh Bureau of Statistics (BBS) said cooled growth across agriculture and services also contributed to the slowdown.
“Analysts point out that the negative growth in industrial sectors and utilities reflects ongoing constraints in domestic production, energy-supply challenges, and shifting demand dynamics,” the report said.
Further, targeted policy interventions are necessary to bring about a rebound in momentum in manufacturing in the final quarter of the fiscal year, they said.
The Q3 GDP figures showed a continuing downward trajectory for the just-concluded FY26, after a 4.96-per cent growth in the first quarter and 3.03-per cent growth in the second quarter.
Analysts said that the slower growth in the Q3 last fiscal may prevent Bangladesh achieving 4.14-per cent overall annual GDP growth in the fiscal as per provisional estimation of BBS.
Manufacturing growth dipped into -0.34 per cent, while utility sectors like electricity, gas, and water supply witnessed a deeper slump to -3.56 per cent.
The services sector, which historically carried a heavy weight in the country’s GDP, grew only 3.52 per cent in the third quarter of FY26.
Another recent report said that the Bangladesh government acknowledged the country’s graduation from the United Nations’ Least Developed Country (LDC) category this year could worsen an already fragile economy.
Due to high inflation, falling exports, and rising energy and fertiliser bills over the Middle East crisis, Bangladesh has asked for a three‑year extension to prepare for the loss of trade preferences, the report said
—IANS
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