The World Bank has forecasted that Bangladesh’s Gross Domestic Product (GDP) growth could fall to 3.3% in the current fiscal year. Despite political instability and various economic challenges, the institution has provided this prediction.
This information was highlighted in the World Bank’s biannual report ‘South Asia Development Update: Taxing Times’, released on Wednesday. A press release from the bank’s Dhaka office confirmed the details in the afternoon.
Earlier in January, the World Bank had predicted a 4.1% GDP growth for Bangladesh. However, in the new report, the forecast has been revised down to 3.3%. The institution is optimistic that the growth will slightly improve in the next fiscal year, potentially reaching 4.9%.
The World Bank also projects that the average inflation rate in the current fiscal year could rise to 10%.
Meanwhile, Bangladesh’s Ministry of Finance has set a GDP growth target of 5.2% for the current fiscal year.
The report further indicates that South Asia’s average economic growth could reach 5.8% in 2025 and rise to 6.1% by 2026. Additionally, it forecasts that India’s growth rate could be 6.5% and Pakistan’s 2.7% in the current fiscal year.
