World Bank forecasts 4.6% GDP growth for Bangladesh this FY.

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World Bank forecasts 4.6% GDP growth for Bangladesh this FY.

B Mirror Report: The World Bank has projected Bangladesh’s gross domestic product (GDP) to grow by 4.6 percent in the current fiscal year, with growth expected to accelerate to 6.1 percent in the next fiscal year (2026–27).

The forecast was outlined in the January edition of the World Bank’s *Global Economic Prospects* report, released today.

According to the report, the upward revision in the growth outlook reflects expectations of a recovery in household consumption, easing inflationary pressures and a decline in political uncertainty, provided the national election is held in early 2026. The World Bank also anticipates that a new government will undertake structural reforms, which are expected to strengthen the industrial sector and support overall economic activity.

The report further notes that higher government spending, alongside improved confidence, is likely to boost investment. However, it cautions that inflation in Bangladesh remains above the official target, prompting tighter monetary policy. As a result, credit growth has slowed, constraining the expansion of trade and business activities. The World Bank also warned that potential counter-tariffs by the United States could pose risks to Bangladesh’s international trade.

In its regional outlook, the World Bank projected Bhutan to record the highest economic growth in South Asia at 7.3 percent, followed by India at 6.5 percent in the current fiscal year. Sri Lanka’s growth is estimated at 3.5 percent, Maldives at 3.9 percent and Nepal at 2.1 percent. The report did not provide growth projections for Pakistan and Afghanistan.

Meanwhile, the Bangladesh Bureau of Statistics (BBS) has released a provisional estimate showing that GDP growth stood at 4.5 percent in the first quarter of the 2025–26 fiscal year (July–September). This compares with 2.58 percent growth during the same period of the previous fiscal year (2024–25).

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