Large-scale manufacturing sectors recorded 4.15 percent annual growth in April 2025, bucking a wider downtrend, though the key readymade garment (RMG) industry posted a modest decline, according to official data.

The latest figures from the Bangladesh Bureau of Statistics (BBS) show that the Quantum Index of Large-Scale Manufacturing (LSM) rose to 182.12 in April 2025 from 174.87 a year earlier. The growth was broad-based, with 19 out of 23 major industrial sectors reporting gains.

The overall industrial expansion highlights resilience in the country’s manufacturing sector, which contributes more than 11 percent to gross domestic product (GDP). However, the RMG sector, Bangladesh’s largest export earner and holding a 61 percent weight in the LSM index, contracted by 0.25 percent in April. Despite the slight fall, the sector’s large size significantly influenced the overall index.

“Any fluctuation in RMG significantly impacts the overall index,” said Dr M. Masrur Reaz, Chairman of Policy Exchange Bangladesh. “Nonetheless, growth in other industries helped balance the garment sector’s decline.”

Four sectors posted negative growth during the month: food products fell 2.4 percent, chemicals dropped 1.59 percent, plastics and rubber goods slipped 0.65 percent, and machinery and equipment contracted nearly 9 percent.

In contrast, several sectors showed strong performances. Textiles, the second-largest contributor, expanded 5.34 percent, while computer, electronic, and optical products grew 5.68 percent. Paper products and printing rose by 14 percent and 12 percent respectively, pharmaceuticals gained 12 percent, electrical equipment surged 16.46 percent, and basic metals advanced 10.23 percent. Furniture and tobacco products also posted gains of over 6 percent and 7 percent respectively.

Industry leaders offered varied perspectives on the figures. Bangladesh Chamber of Industries President Anwar-ul Alam Chowdhury (Parvez) cited high interest rates and sluggish global demand as barriers to stronger growth. Syed Nazrul Islam, a former leader of the Bangladesh Garment Manufacturers and Exporters Association, attributed the RMG sector’s dip to seasonal order slowdowns.

Economists see the latest data as an indication of gradual economic recovery, supported by a stabilising foreign exchange market and improving domestic demand. Dr Zahid Hussain, former lead economist at the World Bank’s Dhaka office, noted that last year’s mid-July student-led uprising had caused temporary disruptions but said the economy is now back on a recovery path.