The slowdown in the gross domestic product growth in the outgoing FY25 will affect the vulnerable populations in Bangladesh leading to rise of the extreme poverty to 9.3 per cent, said World Bank in a report.
Three million more people are likely to slip into poverty, said the WB in its report titled Macro Poverty Outlook released on April 23.
Real GDP growth is projected to moderate to 3.3 per cent in FY25 due to declining private and public investments growth against the backdrop policy uncertainty and rising borrowing.
The report noted that inequality was projected to worsen by almost one Gini point, partially offset by remittance-receiving households.
Additionally, 3 in 5 households are likely to experience greater financial stress by depleting savings in response to the shock, said the WB.
The WB noted that inflation remained elevated at 9.3 per cent in February 2025 due to exchange rate depreciation and supply-side challenges.
In the first half of FY25, nearly 4 per cent of workers lost jobs, with wages falling by 2 per cent for low-skilled and 0.5 per cent for high-skilled workers. As a result, extreme poverty at the $2.15 (2017 PPP) threshold is expected to rise by 2.2 percentage points.
