NewsEconomy

World Bank predicts 5.7% GDP growth for 24-25 FY for Bangladesh

BTJ Desk Report
SHARE
World Bank predicts 5.7% GDP growth for 24-25 FY for Bangladesh

The World Bank has maintained its economic growth forecast for Bangladesh at 5.7% for the upcoming fiscal year, despite the government’s higher target of 6.75% GDP growth for 2024-25. According to the World Bank’s Global Economic Prospects report, Bangladesh’s economy is expected to grow 5.7% in FY25, driven by increased private consumption due to easing inflation and a boost in overall investment from large projects.

The report suggests that shortages of inputs and imported goods will gradually ease and a more flexible exchange rate policy will increase remittance inflows and reduce balance of payments pressures. For the current fiscal year, ending this month, the World Bank projects a growth rate of 5.6%, aligning closely with the Bangladesh Bureau of Statistics’ provisional estimate of 5.82% for 2023-24.

Industrial activity in Bangladesh has been disrupted by import restrictions, leading to material and intermediate goods shortages. While government consumption and investment have supported economic activity, high inflation has reduced real wage growth and household purchasing power, impacting private consumption.

SHARE

Comment here