The World Bank on Thursday (Oct 10) lowered Bangladesh’s economic growth outlook for the fiscal year "July 2024-June 2025" to 4% from its April projection of 5.7% due to “significant political uncertainties” clouding industrial expansion prospects. In addition, repeated floodings would crimp agricultural potentials, the US-based organisation said.

However, economic growth is expected to pick up in the medium to long term as a result of the reform initiatives being taken by the interim government.

Growth will be in the range of 3.2%-5.2% for the fiscal year 2024-2025 with a mid-point at 4%, the multilateral lender said citing the “lack of reliable data.”

In its updated report, World Bank said, "The wide range of the growth projection reflects the lack of available or reliable data in recent months, and significant uncertainties around the political and economic outlook following the recent political turmoil."

However, the “South Asia Development Update (October 2024)” report boosted the regional outlook from 6.0% to 6.4% – where the additional 0.4% growth will be driven by India’s strengthening consumer base as well as quicker than expected recoveries is Sri Lanka and Pakistan.

BDST: 1918 HRS, OCT 10, 2024
MSK/SMS