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Bangladesh economy to grow 5.7% in FY25: World Bank

Arshad Khan

The World Bank (WB) predicts Bangladesh’s economy to grow at 5.7% in the 2024-25 fiscal year

The World Bank (WB) predicts Bangladesh’s economy to grow at 5.7% in the 2024-25 fiscal year, lower than the government’s target of 6.75%. This is due to rising private consumption and increased investment. The WB’s forecast is slightly lower than their previous prediction in April.

The WB expects gradual easing of import shortages and a more flexible exchange rate to help Bangladesh’s economy. This contrasts with the government’s budget which predicts a higher growth rate.

The WB attributes the slower growth to disruptions in industrial activity caused by import restrictions and high inflation reducing household purchasing power. Additionally, high borrowing costs and non-performing loans dampen investor confidence.

On the other hand, the WB raised its global growth outlook due to strong consumer spending in the US, but warns that growth remains slow overall.

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