Bangladesh’s Hidden Trillions: Why Formalising the Economy is the Key to National Power

Reading Time: 3 minutes Bangladesh’s economy is far larger than official figures suggest. The recorded gross domestic product (GDP) for 2025 stands at around USD 475 billion, according to IMF and World Bank projections. But when the vast informal economy — unregistered small businesses, cash transactions, and untaxed income — is accounted for, Bangladesh’s real economic size could exceed USD 830 billion. That revelation exposes both a remarkable strength and a profound weakness. On one hand, it demonstrates the vitality and entrepreneurial drive of millions of Bangladeshis. On the other, it highlights how much potential revenue remains outside the state’s reach — revenue that could fund national development, infrastructure, and defence modernisation. A Nation Built on Informal Enterprise The informal sector is the beating heart of Bangladesh’s economy. From small manufacturers and agricultural producers to transport operators and retailers, these activities power the everyday economy. A recent report by The