World Bank projects growth to fall to 4pc in FY25

 
The World Bank forecasts that Bangladesh's economic growth will drop to 4 percent in the 2024-25 fiscal year due to uncertainties amid the changing political landscape.

The global lender released a report, "South Asia Development Update: Women, Jobs, and Growth", simultaneously for South Asian countries during a virtual press conference on Thursday.

The World Bank noted this significant decline from its previous April prediction of 5.7 percent. The development partner cited political changes and other factors for this abrupt revision. The WB also lowered its estimate for Bangladesh's economic growth in FY24 to 5.2 percent, notably lower than the government's provisional estimate of 5.82 percent for the previous fiscal year.

These revised projections for FY24 and FY25 would mark the lowest growth rates since FY20 when Bangladesh's economy expanded by only 3.45 percent due to the Covid-19 pandemic's severe impact.

The WB's forecast is considerably lower than the 6.75 percent growth target set by the previous Awami League government for FY 2024-25.

While South Asian economies are beginning to recover, Bangladesh stands out as an exception.

The region's growth is shifting broadly in the opposite direction compared to earlier expectations, remaining on the right track.

The Asian Development Bank (ADB), another development partner, has also revised its forecast for the current fiscal year. It previously projected growth at 6.6 percent but now estimates it will fall to 5.1 percent amid chaos in industry and production stagnation following the power change.