Bangladesh growth forecast holds at 3.4% as economic pressures persist

World Bank projects Bangladesh’s gross domestic product (GDP) will grow 3.4% in fiscal 2027, unchanged from fiscal 2026, as banking weaknesses, energy constraints, and elevated inflation weigh on economic activity.

Its Bangladesh Development Update, released Oct. 6, lowered its fiscal 2027 growth forecast by 1.2 percentage points. Growth could reach 3.9% in fiscal 2028 if energy supplies improve and government reforms accelerate.

About 2.1 million more people were living in poverty in fiscal 2026, the report said. Job creation stalled, women lost jobs, and roughly half of the poorest households remained outside social protection programs.

Strong remittance inflows and improving foreign exchange reserves provided some resilience.

World Bank division director for Bangladesh and Bhutan Jean Pesme urged banking, revenue, and energy reforms.

“The time to act is now.”