Economic Progress in May: Growth in Agriculture and Industry, Construction Remains Stagnant

DNN Business Desk:

Bangladesh’s economy showed marginal improvement in May 2025, driven by growth in the agriculture, manufacturing, and service sectors—though the construction sector remained stagnant, raising concerns among economists and policymakers.

According to the latest Purchasing Managers’ Index (PMI) report jointly published by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh, the country's overall PMI score increased by 6 points to 58.9 compared to April, indicating accelerated economic expansion.

The agriculture sector maintained its expansionary trend for the eighth consecutive month, while the manufacturing sector experienced rapid growth for the ninth straight month. The service sector also continued to show improvements and dynamism.

However, the construction sector, despite being on a path of expansion for the past six months, showed no progress in momentum during May, which analysts view as a potential drag on overall economic growth. Indicators related to new businesses and employment reflected contraction.

Masrur Riaz, CEO of Policy Exchange Bangladesh, commented, “Strong performance in export-oriented manufacturing and the seasonal boost from Eid have strengthened agriculture and the supply chain, helping the economy expand faster. But the stagnation in construction is impeding overall momentum.”

Experts believe that while this gradual improvement in key sectors signals positive growth, unresolved issues in construction could limit broader economic expansion. They emphasize the need for increased focus on new investments and employment generation to sustain growth.