World Bank forecasts 4% growth

Bangladesh's economy is expected to grow 4 percent in the current fiscal year ending in June 2025.

The WB said this in its October 2024 South Asia Development Update released on Thursday (October 10).

The WB revised its previous forecast on 'significant uncertainties around the political and economic outlook following the recent political turmoil.

It downgraded Bangladesh’s economic growth outlook for the fiscal year "July 2024-June 2025" to 4% from its April projection of 5.7% due to “significant political uncertainties” clouding industrial expansion prospects. In addition, repeated floodings would crimp agricultural potentials, the US-based organisation said.

The WB also lowered its estimate for Bangladesh's economic growth in FY24 to 5.2 percent, notably lower than the government's provisional estimate of 5.82 percent for the previous fiscal year.

These revised projections for FY24 and FY25 would mark the lowest growth rates since FY20 when Bangladesh's economy expanded by only 3.45 percent due to the Covid-19 pandemic's severe impact.

The WB's forecast is considerably lower than the 6.75 percent growth target set by the previous Awami League government for FY 2024-25.