The World Bank has predicted that the economic growth rate of Bangladesh will decrease in the current fiscal year 2024-25. They said that economic growth may be 4 percent in this financial year.
The organization made such predictions in the 'South Asia Development Update' published on Wednesday (October 9).
Earlier, the World Bank had forecast 5.7 percent growth in the current fiscal year. But now it has decreased by 1.7 percentage points. Sheikh Hasina had set a target of 6.75 percent growth in the current financial year in the budget announced during the government's tenure.
According to the World Bank, the range of economic growth forecasts in Bangladesh from 3.2 percent to 5.2 percent reflects the lack of reliable data and the uncertainty of political stability.
The report notes that in the short term, political uncertainty may hamper investment and industrial sector growth in Bangladesh. Besides, the recent floods may also have some impact on agricultural production.
However, the World Bank is optimistic about the prospects of Bangladesh's economic recovery in the long term. The agency believes that a slow recovery will be possible through financial sector reforms, improved business environment, greater utilization of domestic resources and increased trade growth.
It has also been said that Bangladesh is increasingly establishing geopolitical connections with developed economies. This reduces the risk on the country's main sources of foreign exchange earnings, such as exports, foreign direct investment and portfolio investment.