Economy Lacks Crucial Momentum, World Bank Warns
A WORLD BANK (WB) report has highlighted several concerning aspects of Bangladesh’s economy.
The recently published report notes that economic growth has slowed, private sector investment and employment have weakened, the banking sector has failed to recover, and the decline in the export sector remains unchecked.
It is evident that almost all economic indicators have become quite precarious.
This warning from the World Bank has caused considerable alarm among relevant stakeholders.
Taking the situation into account, observers have urged the government to take effective measures.
According to the WB’s report for the 2025-26 fiscal year, Bangladesh’s real GDP growth rate stands at 3.4 percent.
According to World Bank estimates, private investment declined by 0.5 percent and public investment by 0.7 percent during the 2025-2026 fiscal year.
During the same period, real exports of goods and services fell by 4.8 percent. Implementation of the Annual Development Programme (ADP) also dropped to its lowest level.
Due to gas and electricity shortages, many factories operated well below capacity, and numerous enterprises reduced working hours. Many mills and factories have laid off workers.
It is true that a dire economic picture emerged during the tenure of the previous interim government.
Investors lacked an environment of confidence due to political instability, and foreign investors turned away.
A ‘mob culture’ had spread across various parts of the country. All of this impacted the national economy.
At that time, there was hope that the situation would change once a political government assumed power.
An environment of trust will be fostered, and investment will increase. Since assuming office, the new government has been striving to improve the situation. However, the anticipated level of investment has not yet materialized.
Analysts have urged the government to take effective measures without delay to overcome the ongoing crisis.
In particular, the government must step forward to create a conducive investment climate, with stakeholders emphasizing the importance of political stability in this regard.
The World Bank states that the fragility of the banking sector persists, with risks remaining undiminished.
The organization has identified the sector’s weaknesses as one of the most serious risks to the national economy and has recommended reforms.
It has also warned that artificially keeping weak and ailing institutions afloat could further escalate these risks.
We believe that timely and effective measures must be taken to recover from the ongoing crisis as delaying action in this regard would only exacerbate the situation.
Therefore, it is desirable that the government, in collaboration with relevant stakeholders, effectively implements the necessary plans to restore the expected momentum to the economy.
