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The World Bank has significantly lowered its growth forecast for Bangladesh, predicting that the country's economy could expand by just 3.3% in the 2024-25 financial year — the slowest pace in 36 years. This marks a sharp decline from the 4.1% growth rate projected as recently as January.
Bangladesh’s financial year concludes in June.
The slowdown is attributed to a combination of falling investment, rising inflation, instability in the financial sector, and political uncertainty, all of which are putting serious pressure on the economy. Experts caution that even a 1% drop in GDP could lead to millions losing their jobs, a major concern in a nation where employment opportunities are already limited.
The World Bank further warns that the economic downturn could drive an additional 3 million Bangladeshis into extreme poverty, defined as surviving on less than $2.15 a day. By the end of the current fiscal year, it is projected that 9.3% of the population will fall into extreme poverty, up from 7.7% the previous year.
Adding to the crisis, Bangladesh’s strained relations with India have cost it key economic benefits, including trade opportunities and crisis support. Compounding these challenges, the ongoing US-China trade war has worsened Bangladesh's situation, with the US imposing higher tariffs on Bangladeshi goods while India’s growing strategic importance to China has left Bangladesh increasingly marginalized.
