Bangladesh has witnessed strong economic growth over the past couple of years, though recent events have slowed this trend. In the fiscal year 2023–24, the country's GDP grew by 4.22%, marking the lowest growth rate in four years and falling short of earlier projections.
This slowdown is attributed to several factors, including political instability following the resignation of Prime Minister Sheikh Hasina in August 2024, which disrupted industrial activities and investor confidence. Additionally, high inflation, declining exports, and challenges in the financial sector have further constrained economic performance.
Looking ahead, the World Bank forecasts a modest recovery, projecting a 5.5% GDP growth for the fiscal year 2025–26, contingent upon the implementation of key reforms and stabilization of the political landscape. The Asian Development Bank also anticipates a gradual improvement, with growth potentially reaching 6.6% in the 2024–25 fiscal year, driven by the resilience of the garment export sector.
To support this recovery, the interim government led by Nobel laureate Muhammad Yunus has initiated reforms aimed at enhancing economic stability and attracting foreign investment. International institutions, including the European Investment Bank, have expressed willingness to increase funding for infrastructure projects, signaling confidence in Bangladesh's long-term economic prospects.
While challenges remain, Bangladesh's commitment to reform and the support of international partners provide a foundation for renewed economic growth in the coming years.