Signs of Recovery for Bangladesh Economy: World Bank Forecast
This economic outlook was highlighted in the January edition of the "Global Economic Prospectus," released by the World Bank's Dhaka office on Wednesday, January 14. The report suggests that economic activities are gaining momentum as private consumption gradually rises and inflationary pressures begin to ease.
According to the World Bank, political uncertainty is expected to diminish following the national elections scheduled for early 2026. If the new government proceeds with necessary structural reforms post-election, the industrial sector will strengthen, and the investment climate will improve. These factors contribute to the higher growth forecast for the upcoming fiscal year.
However, the report also identified certain risks. Currently, inflation in Bangladesh remains above target, and tight monetary policies have restricted credit flow, hindering business and investment. Additionally, potential reciprocal tariffs from the United States could pose new challenges to international trade. Nevertheless, the World Bank believes these risks can be mitigated through increased government spending and enhanced investment.
Among South Asian nations, Bhutan is projected to have the highest growth (7.3%) this fiscal year, followed by India (6.5%), Bangladesh (4.6%), the Maldives (3.9%), Sri Lanka (3.5%), and Nepal (2.1%).
Meanwhile, according to the Bangladesh Bureau of Statistics (BBS), GDP growth in the first quarter of the 2025-26 fiscal year stood at 4.5%, showing significant improvement compared to the same period in the previous fiscal year.
