The World Bank (WB) has revised its growth forecast for Bangladesh, projecting a 4% economic growth for the fiscal year ending in June 2025, down from its earlier estimate of 5.7%.

The revision reflects “significant uncertainties around the political and economic outlook” following recent political turmoil.

The WB also reduced its estimate for FY24 growth to 5.2%, lower than the government’s provisional estimate of 5.82%. Short-term challenges, including political unrest and recent floods, are expected to dampen investment and industrial growth.

Recovery is anticipated in the medium term with financial reforms and improved trade.