WB projects 4% GDP growth for Bangladesh in FY 2024-25

NN Online:

The World Bank (WB) has projected a decline in Bangladesh’s GDP growth for the FY 2024-25, estimating an increase of just 4 percent. This forecast was released in the “South Asia Development Update” on Thursday, raising concerns about the country’s economic outlook.

Moreover, WB has predicted that there will be 5.7% growth in the current financial year. But now it has decreased by 1.7 percentage points. The budget announced during the previous government had set a growth target of 6.75% in the current fiscal year.

World Bank’s Chief Economist for South Asia Franziska Ohnsorge said, “The institution has revised its growth forecast for Bangladesh. This revision is mainly attributed to ongoing policy uncertainty and the impact of recent floods.”

According to the World Bank’s report, recent political instability has led to uncertainty about the future of politics and economy of Bangladesh. This political climate could result in decreased investment and industrial growth, while recent floods are likely to harm agricultural production.