Bangladesh’s economy is on a robust growth trajectory, as reflected in the latest Purchasing Managers’ Index (PMI) report, which recorded a reading of 65.7 in January, a notable increase of 4.0 points from December. This expansion is particularly pronounced in key sectors, including agriculture, construction, and services, with the ready-made garments (RMG) sector playing a pivotal role in the manufacturing landscape.
The PMI, which provides a monthly snapshot of economic activity, indicates that a reading above 50 signifies growth. The recent data suggests that the RMG sector continues to show resilience and is driving much of the manufacturing growth. Although the overall manufacturing sector experienced a slower expansion, the RMG industry remains a vital contributor, bolstered by rising export orders and seasonal demand.
The manufacturing indicators reflect a fifth consecutive month of expansion. Key metrics such as new orders, factory output, and input purchases signal a positive outlook, particularly in the export-driven RMG segment.
However, challenges persist. The PMI report highlights concerns over sluggish domestic demand, rising business costs, and disruptions in energy supply, which have impacted overall confidence among firms in the domestic market. Despite these hurdles, the RMG sector’s export potential remains a beacon of growth.
The PMI report emphasises that future economic momentum will heavily depend on political stability, especially regarding the timeline for transitioning to an elected government. As the economy continues to expand, stakeholders are keenly watching the political landscape to ensure sustained growth.
Initiated in 2024 by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh, in collaboration with the Singapore Institute of Purchasing & Materials Management (SIPMM), the PMI is based on monthly surveys of over 500 private-sector enterprises, providing valuable insights into the country’s economic health.
