Pic: Adobe Stock
The real GDP growth is forecast to remain relatively subdued at 5.6 per cent for the current fiscal, notably lower than the pre-COVID-19 pandemic average of 6.6 per cent annually even if the WB projects a continuation of slower growth in the next fiscal, estimated at 5.7 per cent, primarily driven by a modest recovery in private consumption due to inflation moderation.
The Washington-based lender, in its Bangladesh Development Update, underscored the need for enhanced implementation of major public investment projects to facilitate investment recovery.
It warned that persistent inflation may impede private consumption growth, while energy and imported input shortages, alongside escalating interest rates and financial sector vulnerabilities, could dampen investor sentiment.
On the supply side, the WB anticipates higher industrial growth, despite subdued services growth.
Fibre2Fashion News Desk (DR)