On the supply side, services are expected to expand, driven by improved household purchasing power. Agricultural growth is likely to normalise, contingent on favourable weather and effective government policy support.
In contrast, industrial growth may slow as US tariffs constrain economic activity, said the release.
It said Bangladesh’s economy is estimated to grow by 4.0 per cent in fiscal year (FY) 2025, rising to 5.0 per cent in FY-2026.
Although garment exports remain resilient, the slower growth estimate reflects subdued domestic demand amid ongoing political transitions, recurrent flooding, industrial labour disputes, and persistently high inflation.
The economy expanded by 4.2 per cent in FY-2024.
“Future growth will depend on improving the business environment to boost competitiveness and attract investment, and on ensuring reliable energy supplies,” said Hoe Yun Jeong, ADB Country Director for Bangladesh.