World Bank cuts Bangladesh growth forecast for FY26

The World Bank (WB) has cut its forecast for Bangladesh’s economic growth from the June projection by 0.3 percentage points for the current fiscal year amid persistent inflation, falling exports, and sluggish investment.

The multilateral lender said the economy of the South Asian country will grow by 4.6 percent in the current year ending next June, according to its Global Economic Prospects released today.

The downward revision comes just a day after the Bangladesh Bureau of Statistics (BBS) reported that gross domestic product (GDP), or overall output, grew by 4.50 percent in the first quarter of FY26, driven by the industrial and farm sectors.

GDP growth was 2.58 percent in the same quarter of the previous fiscal year.

Economists termed the growth a sign of recovery and added that the challenge lies in sustaining it.

“In Bangladesh, demand for credit has declined amid subdued business,” the WB said, adding that Bangladesh’s economy may pick up to 6.1 percent in the next fiscal year, with private consumption strengthening alongside easing inflationary pressures.

Last month, the Asian Development Bank (ADB) revised down its growth forecast for Bangladesh, citing sluggish investment ahead of the elections and slower growth in export earnings for FY26—for the second time.

ADB said the economy may grow by 4.7 percent, down from its September forecast of 5 percent. In April, ADB had projected 5.1 percent growth for the same year.