World Bank predicts 5.6pc GDP growth

The World Bank has predicted that the GDP growth rate in Bangladesh will slow to 5.6 percent in 2023-2024 fiscal. It was 5.8 percent in 2022-2023 fiscal. GDP growth rate will improve marginally to 5.7 percent in FY25.

The World Bank released the latest Bangladesh development update on Tuesday.

World Bank Country Director for Bangladesh Abdoulaye Seck spoke at the launching ceremony of the update at its office while senior economists Bernard Haven and Rangeet Ghosh jointly made a power-point presentation. Senior external affairs officer Mehrin A Mahbub moderated the update launching.

The World Bank projected 7.5 percent growth rate for India in FY24 followed by 4.9 percent for Bhutan, 3.3 percent for Nepal, 4.7 percent for Maldives, 2.2 percent for Sri Lanka, and 1.8 percent for Pakistan.

Bangladesh's economy made a strong turnaround from the COVID-19 pandemic while policy reforms can help address the surrounding challenges to put Bangladesh back on track for faster growth, said the World Bank.

The World Bank said greater exchange rate flexibility would help restore balance between demand and supply in the foreign exchange market. Structural reforms will be key to diversify the economy and build resilience over the medium and long term, including measures to raise government revenues to support investments in infrastructure and human capital.

Persistent inflation eroded consumer purchasing power, while investment was dampened by tight liquidity conditions, rising interest rates, import restrictions, and increased input costs stemming from upward revisions in administered energy prices.