According to the World Bank, Bangladesh's economy is currently facing four challenges – high inflation, foreign exchange deficit, import restrictions and risks to the financial sector.
However, the WB estimated that Bangladesh's economy would grow at 5.6 percent, although the government has targeted a growth of 7.5 percent.
The Washington-based global lender highlighted these in its Bangladesh Development Update, unveiled at a press conference in Dhaka on Tuesday.
World Bank Country Director for Bangladesh and Bhutan Abdoulaye Seck and World Bank Dhaka Office Senior Economists Bernard Heaven and Rangit Ghosh addressed the event.
Beyond that, there are three risks to the economy.
First, the delay in exchange rate reform increases the deficit due to foreign exchange shortages and import restrictions.
Second, high inflation persists for a long time due to rising commodity prices.
Third, ongoing risks to the financial sector may increase because a coordinated reform program has not been undertaken.
WB also commented on the recent bank merger initiative, saying caution should be exercised and international standards need to be followed to complete the process.