World Bank downgrades Bangladesh’s FY25 growth forecast to 3.3 percent

The World Bank has projected a 3.3 percent GDP growth for Bangladesh in the current fiscal year, despite political instability and economic challenges, down from its earlier 4.1 percent forecast in January. 

The bank anticipated a slight increase to 4.9 percent growth in the next fiscal year. 

This outlook was detailed in the World Bank's biennial report, South Asia Development Update: Taxing Times, released on Wednesday from its Dhaka office. 

Meanwhile, Bangladesh’s Ministry of Finance targeted a 5.2 percent GDP growth.

The report also estimated average inflation at 10 percent for the current fiscal year. 

Regionally, South Asia’s average GDP growth is projected at 5.8 percent in 2025, rising to 6.1 percent in 2026, with India expected to grow by 6.5 percent and Pakistan by 2.7 percent this fiscal year. 

Martin Raiser, World Bank Vice President for South Asia, emphasised the need for reforms to enhance economic resilience, growth, and job creation, including opening trade, modernising agriculture, and boosting the private sector.