World Bank Predicts GDP Dip in Bangladesh
- Update Time : 04:01:36 pm, Wednesday, 23 April 2025
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Bangladesh’s GDP growth is projected to fall to just 3.3% by the end of the 2024–25 fiscal year, down from the previous forecast of 4%, according to the World Bank’s newly released “South Asia Development Update: Taxing Times” published on Wednesday, April 23. The report attributes this slowdown to political unrest, curfews, and internet shutdowns, which have significantly disrupted economic activity. Both public and private investments saw sharp declines in the first three quarters, a trend expected to impact the entire fiscal year. Private sector credit growth stood at only 7.3% through December 2024—the lowest in three decades—reflecting weak investment sentiment. Public investment also slowed due to reduced capital spending. However, the report notes some relief as external pressure has eased and the current account deficit has narrowed. Martin Raiser, World Bank Vice President for South Asia, emphasized the need for targeted reforms in revenue systems, agricultural productivity, and climate resilience. In contrast, India’s growth is projected to decline to 6.3% in 2025–26, while Pakistan and Sri Lanka are expected to grow at 3.1%. The report warns that without political stability and an investor-friendly environment, Bangladesh’s economy may face even greater challenges ahead.
