DHAKA, Oct. 7 (Xinhua) -- The World Bank on Tuesday forecast Bangladesh's economy to grow by 4.8 percent in the current 2025-26 fiscal year (July 2025-June 2026), a rise from last fiscal year's four percent.
In its latest Bangladesh Development Update released here Tuesday, the Washington-based lender further projected growth will accelerate to 6.3 percent in the next 2026-27 fiscal year, signaling a continued recovery trajectory.
"The economy has shown resilience, but this cannot be taken for granted," said Jean Pesme, World Bank division director for Bangladesh and Bhutan.
"To ensure a strong growth path and more and better jobs, Bangladesh needs bold reforms and faster implementation to enhance domestic revenue mobilization, address banking sector vulnerabilities, reduce energy subsidies, plan urbanization, and improve the investment climate," Pesme said.
According to the report, while Bangladesh's economic growth prospects are positive, immediate reforms are critical to maintain this momentum and generate jobs, especially for youth and women.
It said the economy recovered in the second half of FY2025 after a slow start, driven by robust export growth, record-breaking remittances, and rising foreign exchange reserves.
The shift to a market-based exchange rate alleviated external pressures by stabilizing reserves and reducing the current account deficit, it noted.
Furthermore, inflation decreased due to tight monetary policy, strong harvests, and lower import duties on essential foods, said the global lender. ■
