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World Bank lowers Bangladesh’s growth projection for FY24

October 4, 2023 9:56 AM IST

India | Global Economy | DD India | Bangladesh | World Bank | FY24

The World Bank in its latest update released on Tuesday has projected Bangladesh’s economic growth to be 5.6 percent in the 2023-24 fiscal year ending next June.

The global lender in its previous projection in April, forecasted a 6.2 percent GDP growth for the current fiscal year.

The World Bank in its update stated that Bangladesh made a strong recovery from the COVID-19 pandemic, but the post-pandemic recovery was disrupted in FY23 with rising inflation, vulnerabilities in the financial sector, external pressure, and global economic uncertainty, reports UNB.

The World Bank suggested that Bangladesh needs to go for a single market-based exchange rate which would help to attract foreign currency inflows through formal channels and support the balance of payment and reserve accumulation.

Meanwhile, The foreign-aid inflow to Bangladesh in July-August period of the current fiscal year (FY) 2023-24 marked a substantial fall. The reduction in foreign aid inflow along with fall in remittance and export earnings has increased pressure on Bangladesh’s falling foreign-exchange reserves, according to the experts.

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