Economic growth may slow to 4.6pc this FY

Bangladesh economy may expand at a rate of 4.6 per cent in the current fiscal year in a further 0.3-percentage-point fall from the level predicted in June 2025, says the World Bank in an update.
With this downgrading, the global development financier cut the country's economic-growth forecast for a second time in seven months on several grounds.
The growth arithmetic is contained in WB's Global Economic Prospect (GEP) report unveiled Wednesday, from its headquarters in Washington, DC.
In the previous forecast last June, the Washington-based global lender had forecast 4.9-percent gross domestic product (GDP) growth for the country this fiscal.
In October 2025, the WB in another report titled 'Bangladesh Development Update' projected that Bangladesh might grow at a 4.8-percent rate for FY2026.
Meanwhile, the bank has drawn a better scenario of the Bangladesh economy in the next financial year (FY2026-27) when the country may grow at 6.1 per cent recovering from its sluggish past couple of years.
The Asian Development Bank (ADB) in December also drew a lackluster picture for Bangladesh, revising down the country's growth outlook to 4.7 per cent for the current FY2026 from its September 2025 projection of 5.0 per cent.
The interim government, in the meantime, has also lowered economic-growth outlook to 5.5 per cent for the current FY from 7.0 per cent reflected in the ousted Sheikh Hasina government-framed last Medium-Term Macroeconomic Policy Statement (MTMPS).
The World Bank in its latest GEP explains reasons for a downturn, including internal external headwinds.
It says Bangladesh's economy is navigating a period of tight fiscal constraints while pushing forward with critical revenue reforms.
And the South Asian country continues to be categorised as a commodity-importing emerging market and developing economy (EMDE).
The report highlights that Bangladesh is currently undertaking significant reforms to beef up its revenues. These efforts come at a time of "tight fiscal constraints" for the nation.
Bangladesh is among the regional economies focused on strengthening fiscal frameworks to manage high debt burdens and borrowing costs.
As an economy with external financing needs, Bangladesh remains vulnerable to fluctuations in global financial conditions and potential shifts in remittance inflows.
"While last year's currency appreciations against the US dollar helped dampen imported inflation, any sharp reversals could renew inflationary pressures and strain debt sustainability," the reappraisal report reads.
Within South Asia, it remarks, Bangladesh's reform path mirrors a broader regional trend toward fiscal responsibility.
For instance, while India is reducing its deficit through consolidation, Bangladesh is specifically focused on revenue-side improvements to create much-needed fiscal space.
The World Bank emphasizes that for EMDEs like Bangladesh to sustain long-term growth and job creation, they must continue to address structural bottlenecks and strengthen both monetary and fiscal policy frameworks.
Meanwhile, the global economy is proving more resilient than anticipated despite persistent trade tensions and policy uncertainty, the WB's GEP report says.
Global growth is projected to remain broadly steady over the next two years, easing to 2.6 per cent in 2026 before rising to 2.7 per cent in 2027, an upward revision from the June forecast.
Among the South Asian nations, the WB has kept India's growth projection unchanged at 6.5 per cent in the current FY2026.
The resilience reflects better-than-expected growth-especially in the United States, which accounts for about two-thirds of the upward revision to the forecast in 2026.