WB projects 3.3pc GDP growth in FY'25

The World Bank (WB) has projected that the economy of Bangladesh would grow by 3.3 per cent in the fiscal year (FY) 2024-25, ending June 30.

The GDP (gross domestic product) growth of Bangladesh is estimated to rise at 4.9 per cent in the FY '26 from the previous level, according to the WB's latest Global Economic Prospects report, released on Tuesday. The WB has remained unchanged in its projection for Bangladesh's GDP growth, issued earlier in April.

On the other hand, Bangladesh Bureau of Statistics (BBS) has estimated the country's GDP growth at 3.97 per cent for the outgoing fiscal year.

Globally, economic growth is slowing due to a substantial rise in trade barriers and the pervasive effects of an uncertain global policy environment. Growth is expected to weaken to 2.3 per cent in 2025, with deceleration in most economies compared to last year. This would mark the slowest rate of global growth since 2008, aside from outright global recessions.

In 2026-27, a tepid recovery is expected, leaving global output materially below January projections. Progress by emerging market and developing economies (EMDEs) in closing per capita income gaps with advanced economies and reducing extreme poverty is anticipated to remain insufficient.

The outlook largely hinges on the evolution of trade policy globally. Growth could turn out to be lower if trade restrictions escalate or if policy uncertainty persists, which could also result in a build-up of financial stress.

Other downside risks include weaker-than-expected growth in major economies with adverse global spillovers, worsening conflicts, and extreme weather events. On the upside, uncertainty and trade barriers could diminish if major economies reach lasting agreements that address trade tensions.

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