DHAKA, June 12 (Xinhua) -- The World Bank forecasts that Bangladesh's economic growth will slow to 5.6 percent in fiscal year 2023-24 (July 2023 to June 2024).
According to the Washington-based lender's Global Economic Prospects June 2024 report released on Tuesday, elevated inflation has subdued real wage growth, impacting private consumption, while higher borrowing costs have dampened demand.
The report highlighted that industrial activity in Bangladesh faced disruptions, partly due to ongoing import restrictions. It projected a slight growth increase to 5.7 percent in FY 2024-25 and 5.9 percent in FY 2025-26 for Bangladesh.
The expected rise in growth is attributed to easing inflation leading to increased private consumption and the implementation of significant investment projects supporting overall investment.
The report also mentioned that growth in the South Asia region rose to 6.6 percent in 2023, primarily fueled by accelerated growth in India. While private sector activity improved in early 2024 in countries like Pakistan and Sri Lanka, it remained relatively weak. ■