WB projects Bangladesh’s GDP growth at 4.8pc in FY26, 6.3pc in FY27

The World Bank has projected Bangladesh’s real GDP growth to reach 4.8 per cent in the current fiscal year (FY26), before accelerating to 6.3 per cent in FY27, supported by signs of economic recovery and easing external pressures.

According to the World Bank’s Bangladesh Development Update released in October 2025, the economy began rebounding in the latter half of FY25 following earlier disruptions, aided by stabilising foreign exchange reserves, narrowing current account deficits, and moderating inflation.

The report notes that inflation has started to decline, helped by a tight monetary policy and reduced duties on essential food imports. Remittance inflows have also reached record levels, providing a critical cushion for the economy amid global and domestic challenges.

Despite the emerging signs of recovery, the World Bank warned that Bangladesh’s growth prospects remain constrained by weak private investment, stalled job creation, and a fragile banking sector burdened with high non-performing loans. Weak revenue mobilisation also continues to pose a challenge to fiscal sustainability.

“The outlook depends on bold and timely economic reforms,” the report said, urging the government to strengthen fiscal discipline, enhance the investment climate, and prioritise financial sector restructuring to sustain momentum.

The World Bank underscored that improving the business environment and promoting private sector-led growth will be crucial for creating jobs and achieving higher, more inclusive growth over the medium term.