In the current financial year, the economic growth in Bangladesh may decrease to 4 percent. The World Bank forecasts weak growth in investment and industry and moderate growth in agriculture as a result of recent floods.
The World Bank’s South Asia Development Update published today on Wednesday said that Bangladesh’s growth will slow down to between 3.2 percent and 5.2 percent. According to the World Bank, the intermediate point would be 4 percent. The World Bank had in April forecast growth of 5.7 percent for the current fiscal year 2024-25.
In the budget of the current financial year, the previous Awami League government had set a target of achieving 6.75 percent growth. As such, the World Bank’s forecast is significantly lower than the government’s target. If the economic growth in Bangladesh falls as per the World Bank forecast, it will be the slowest growth since the Covid pandemic. In the fiscal year 2019-20, the country had a growth of 3.45 percent.
In the report, the World Bank said its forecasts reflect the lack of reliable data in recent months and the uncertainty surrounding the political and economic outlook. In the short term political uncertainty will not boost investment and growth in the industrial sector. On the other hand, agricultural production will be slightly affected due to floods.
