WB Lowers Bangladesh's Economic Growth Forecast

Bangladesh's economy might experience a slower rate of expansion in the ongoing fiscal year compared to the previous one, according to the World Bank.

This deceleration is attributed to various challenging economic factors such as elevated inflation, external payment pressures, vulnerabilities in the financial sector, and overall uncertainty.

In its Bangladesh Development Update, the World Bank has estimated that the country's economic growth will decrease from 6 percent in the previous fiscal year to 5.6 percent in the 2023-24 fiscal year ending in June.

This is a revision from their earlier projection in April, where they had anticipated a GDP growth of 6.2 percent for the current fiscal year.

The report suggests that growth will rebound to 5.8 percent in FY25, driven by a reduction in inflation and the gradual normalization of the external sector.

However, the World Bank cautioned that achieving stability in the external sector hinges on addressing exchange rate distortions and removing exchange rate ceilings.

Furthermore, the report highlights the possibility of persistent inflation, influenced by both domestic and global commodity prices.

Additionally, the World Bank expressed concerns about uncertainty in the lead-up to the national elections scheduled for early January 2024.