The World Bank has sharply downgraded Bangladesh’s GDP growth projection for the fiscal year 2024–25 to 3.3%, marking the country’s lowest growth rate since the COVID-19 pandemic. This revision reflects escalating political instability and mounting financial pressures that have dampened investment and economic activity.
This updated forecast, released on April 23 in the World Bank’s biannual South Asia Development Update, revises the previous estimate of 4% issued in October 2024. The report attributes the slowdown to disruptions caused by last summer’s anti-government protests, ongoing political uncertainty, and persistent inflation, all of which have eroded investor confidence and slowed business operations .  
The World Bank also cautioned that Bangladesh’s 12-month average inflation could reach 10% in FY25, driven by food price surges and currency instability. The interim government, led by Nobel laureate Muhammad Yunus since August 2024, has implemented various reforms, including adjustments to exchange rate policies and banking sector governance. However, these measures have yet to stabilize the economy .  
Looking ahead, the World Bank projects a modest recovery, with GDP growth expected to rise to 4.9% in FY2025–26. Nevertheless, this remains below Bangladesh’s pre-pandemic average of over 6% growth, underscoring the challenges the country faces in restoring economic momentum .
Other international institutions have also revised their growth forecasts for Bangladesh. The International Monetary Fund anticipates a 3.76% growth rate, while the Asian Development Bank projects 3.9% for the current fiscal year . 
Despite these challenges, the World Bank remains committed to supporting Bangladesh’s development. In September 2024, it pledged over $2 billion in financing to aid in reforms, disaster response, and infrastructure improvements .  
As Bangladesh navigates this period of political transition and economic uncertainty, the effectiveness of ongoing reforms and the restoration of investor confidence will be critical to achieving sustainable growth.