World Bank cuts Bangladesh growth forecast to 5.2%
The World Bank today said Bangladesh's gross domestic product (GDP) would grow by 5.2 percent in the current fiscal year, unchanged from its January forecast, as elevated inflation, tighter financial conditions, disruptive import restrictions, and global economic uncertainty keep hurting the economy.
In June previous year, the World Bank projected that the GDP of Bangladesh would expand by 6.7 percent in 2022-23.
However, in FY24, growth is expected to pick up to 6.2%, according to the Bangladesh Development Update April 2023 entitled Trade Reform: An Urgent Agenda released on Tuesday.
The twice-year-update said Bangladesh made a rapid recovery from the Covid-19 pandemic supported by prudent macroeconomic policies, but the economy now faces considerable challenges with global economic uncertainty, rising inflationary pressure, energy shortages, a balance-of-payments deficit, and a revenue shortfall.
'GDP growth is expected to decelerate in FY23 to 5.2% before returning to its long-term trend,' said the World Bank's Bangladesh Development Update released by its Country Director to Bangladesh and Bhutan Abdoulaye Seck from Dhaka office this morning.
Bangladesh's GDP expanded by 6.9% in 2020-21 and 7.1 percent in 2021-22.
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