The World Bank in its latest Global Economic Prospects report has kept Bangladesh’s growth projections unchanged – at 3.3% for FY2024-25, 4.9% in FY26 and 5.7% in FY27.
The report published on Tuesday (10 June) attributes the rebound in the next two fiscal years to improved political stability and the implementation of key reforms aimed at strengthening the business environment and boosting job creation. Investment, which had previously slowed, is forecast to revive under these favourable conditions.
Despite uncertainties in the global economy and weaker demand from major trading partners, resilient remittance inflows and easing inflation are anticipated to support stronger private consumption. However, export growth is expected to remain subdued due to slower global growth and rising trade barriers.
Inflation is projected to moderate from FY2025-26, creating room for gradual monetary easing, the World Bank report noted.
On the fiscal side, Bangladesh is expected to see a decline in capital spending, though this will be counterbalanced by increases in current expenditures, including subsidies, according to the report.
The growth in FY25 is estimated to have slowed to 3.3%, owing to the adverse effects of political turmoil in 2024, according to the report. Heightened uncertainty and increased input costs impeded private investment, while industrial output declined due to a slowdown in imports of capital goods, the report reads.
On the global front, the Economic Prospects report has cut its 2025 global growth forecast, citing rising trade tensions and mounting policy uncertainty. The downward revision follows the United States’ decision to impose broad tariffs, which are weighing on the outlook for global trade and investment.
In its updated assessment, the Bank now expects global GDP growth to reach 2.3% in 2025, down from 2.7% projected in January – the latest in a series
