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World Bank Cuts Bangladesh Growth Forecast to 4% for FY25
The World Bank
The World Bank has revised its growth projection for Bangladesh, now estimating a modest 4% expansion for the fiscal year ending in June 2025. This marks a significant decline from the previous forecast of 5.7%, driven by rising concerns over political instability and economic uncertainty.
In its report, the World Bank cited a slowdown in garment exports, which are vital to the nation's economy, as a key factor influencing the downgraded outlook. The social unrest in recent months has further exacerbated these economic challenges.
“Bangladesh’s growth forecast was downgraded to 4.0% from 5.7% for the fiscal year 2024/25, reflecting these adverse conditions,” the report stated.
In contrast, the World Bank has raised its growth forecast for South Asia to 6.4% for 2024, up from an earlier estimate of 6.0%. This increase is attributed to robust domestic demand in India and a faster recovery in crisis-affected nations such as Sri Lanka and Pakistan.
“You have an emerging class of consumers in India driving the economy forward, recoveries in Sri Lanka and Pakistan, and a tourism-led resurgence in Nepal and Bhutan,” said Martin Raiser, World Bank Vice President for South Asia, in an interview with Reuters.
As Bangladesh navigates these challenges, the focus will be on stabilizing its economy and restoring investor confidence to regain its growth momentum.