United News of Bangladesh

World Bank’s new Vice President for the South Asia Region Johannes Zutt has said the global lending agency ‘remains committed’ to helping Bangladesh to maintain a ‘sustainable and inclusive growth path and create more and better jobs’ for the two million youths entering the job market every year. “I have very fond memories of Bangladesh, its people and the friendships I have made. I was always impressed by the resilience and creativity of the Bangladeshi people and their determination to build a better future for their children,” said Zutt, who arrived in Dhaka on Saturday, marking Bangladesh as his first official tour in the new role. During his four-day official visit, Zutt will meet Chief Adviser Prof Muhammad Yunus, Finance Adviser Dr Salehuddin Ahmed, Bangladesh Bank Governor Ahsan H Mansur, and other senior government officials and private sector representatives, according to the WB. The WB Vice President said he looks forward to seeing firsthand the transformative changes that have been achieved over the ten years since he left his role as Country Director.  World Bank predicts worst decade for global growth since 1960s Zutt assumed his role as World Bank Vice President for the South Asia Region on July 1, 2025 and he previously served as the World Bank’s Country Director for Bangladesh, Bhutan and Nepal from 2013-2015.  A Dutch national, Zutt joined the World Bank in 1999 and has taken positions of increasing responsibility. He most recently served as the World Bank’s Country Director for Brazil. Before this he was the Director for Strategy, Results, Risk and Learning in the Operational Policy and Country Services (OPCS) Vice Presidency. Zutt has also served as Country Director for Türkiye, Comoros, Eritrea, Kenya, Rwanda, Seychelles and Somalia. The World Bank was among the first development partners to support Bangladesh after its independence. Since then, the Bank has committed about $46 billion to Bangladesh, mostly in grants or concessional credits. Bangladesh currently has one of the largest ongoing programs supported by the World Bank Group’s International Development Association (IDA)

More than half of the world’s low-income countries are either already in or nearing a high risk of debt distress, the World Bank has warned, calling on global leaders to adopt “radical debt transparency” to avert future financial crises. In its latest report, Radical Debt Transparency, the Bank reveals that 54 percent of low-income countries face severe debt vulnerabilities, with many spending more on debt repayments than on essential sectors such as education, healthcare, and infrastructure combined. “Without urgent action, future debt crises will not only be the result of economic shocks, but also of undisclosed and misunderstood liabilities,” said Axel van Trotsenburg, World Bank Senior Managing Director, in a signed commentary accompanying the report. The report underscores that while past international efforts like the Heavily Indebted Poor Countries (HIPC) Initiative provided critical relief, today’s debt environment has grown significantly more complex.  An increasing share of sovereign borrowing now occurs off-budget, through opaque arrangements, collateral-backed loans, and deals with non-traditional lenders. Since 2020, the proportion of low-income countries publishing some form of debt data has risen from under 60 percent to more than 75 percent, the report notes. However, only one in four countries disclose loan-level data on new debt, raising concerns about the depth and consistency of current reporting standards. World Bank approves over $1 billion for projects in Lebanon, Syria and Iraq The World Bank is urging stronger national oversight and full public disclosure of lending terms.  It has also recommended leveraging technology to standardise debt-recording systems and enhance accountability, proposing the development of a joint digital platform for both borrowers and creditors. “Transparency is not a luxury—it’s a necessity,” said van Trotsenburg. “It rebuilds trust with investors and supports long-term growth and stability.” The report comes at a time when developing economies are grappling with shrinking access to affordable financing, further strained by global shocks such as commodity price volatility and climate-induced disasters. While the World Bank and International Monetary Fund have extended technical assistance and financial support to vulnerable nations, and the G20’s Common Framework offers a mechanism for debt resolution, experts believe these measures remain insufficient without more coordinated and comprehensive action. The report concludes by warning that debt crises—once largely reactive—must now be addressed proactively, with radical transparency serving as the first line of defence against yet another lost decade of development.  

Jean Pesme will assume office on Tuesday as the new World Bank Division Director for Bangladesh and Bhutan. Pesme brings extensive development experience to the role, with a proven track record in fostering economic growth, enhancing financial system resilience and promoting inclusivity, according to a press release. A French national and an engineer by training, Pesme joined the World Bank in 2003 as a Senior Infrastructure Specialist and has since held leadership positions within the World Bank Group, including its private sector arm, IFC. He has extensive experience in working on financial sector issues, notably in the Middle East and North Africa. Prior to taking this assignment, Pesme served as the Global Director, Finance and led the World Bank’s work to promote the development of sound, stable, sustainable, and inclusive financial systems.  He also led the World Bank’s Financial Stability and Integrity global team, which assists countries in building and restoring robust and resilient financial systems operating with integrity, transparency and in compliance with international standards. Pesme said that Bangladesh has unique development experiences to share with the world. “This is a country that has repeatedly surprised the world with its development innovation, determination, and resilience to tackle pressing development and economic challenges,” he said. Canadian High Commission hosts seminar on grain, oilseed storage  “I look forward to working closely with the government and people of Bangladesh to help the country maintain a robust and inclusive development and growth trajectory.” He also said that the World Bank is harnessing the full strength of the One World Bank Group by collaborating closely with our private sector arms, IFC and MIGA to mobilize private sector growth and investment, leading to creation of quality jobs. In his role as the World Bank Division Director for Bangladesh and Bhutan, Pesme will lead the strategic and policy dialogue to shape World Bank engagement in Bangladesh and Bhutan, supporting the countries to achieve their respective development goals. He will also ensure that the country and regional programs are aligned with the World Bank Group's vision and mission and anchored in country priorities, while emphasizing selectivity, speed, scale, impact, and partnerships.

World Bank has approved $500 million loan to help improve trust in Bangladesh’s public institutions through increased accountability and transparency and enhance corporate governance and stability in the financial sector. The Strengthening Governance and Institutional Resilience Development Policy Credit supports public and financial sector reforms, which are key for sustained economic growth, according to a press release.   The reforms will also lay the foundations for improved services for vulnerable households. Bangladesh has one of the lowest revenue-to-GDP ratios among middle-income countries, significantly limiting the government’s ability to deliver quality services to its people, said the press release. World Bank predicts worst decade for global growth since 1960s This programme supports reforms aimed at improving domestic revenue mobilisation. The reforms would make tax administration and policy-making more transparent and efficient aligning with international best practices. Further, it will support reforms to move to a more strategic, systematic, and transparent approach to managing tax exemptions that will require Parliamentary approval for all exemptions, which would be a significant step away from current ad hoc practices. The financing will also strengthen corporate governance and risk management frameworks by aligning financial reporting with international standards and increasing transparency. It will help improve financial sector stability by providing the Bangladesh Bank with a complete range of resolution powers to address vulnerabilities in the banking sector.   A third strand of reforms will improve transparency, accountability and efficiency across the public sector. By 2027, all government project appraisal documents will be required to be made public. Public procurement system will be required to use electronic government procurement (e-GP), disclose of beneficiary ownership, and remove price caps to foster competition and reduce corruption risks. To improve financial accountability and transparency in the public sector, the Office of the Comptroller and Auditor General’s auditing capacity will be strengthened. The independence of the Bangladesh Bureau of Statistics will improve data transparency, leading to better service delivery for citizens. Finally, cash transfer programs for the poor and vulnerable will be made more effective with the operationalisation of a dynamic social registry. World Bank Interim Country Director for Bangladesh Gayle Martin said that Improvements in how public finances are managed are important for Bangladesh’s economy to grow sustainably. “The government is taking ambitious steps to make its institutions more open and answerable, so they can serve the people better,” he said. He mentioned that this financing will support the government's efforts to strengthen its policies and regulatory framework to build a stronger, more inclusive economy that benefits everyone. “Through another project that was approved last week, we are supporting the government to implement these reforms.” World Bank to provide $30 mln more for Bangladesh’s power transmission network World Bank Senior Economist and Task Team Leader for the project Dhruv Sharma said that This Financing is closely aligned with the citizen’s desire for transparency and accountability and will support Bangladesh’s ambitious reform agenda for improving domestic revenue mobilization, financial sector stability and governance, and public sector performance. “Improving data systems and moving towards improved selection of beneficiaries will ensure that government resources effectively reach poor and vulnerable households, especially during economic shocks and natural disasters.”      

The global economy is on track to experience its slowest decade of growth since the 1960s, largely due to the ripple effects of US-imposed tariffs under Donald Trump, the World Bank has warned. In its latest twice-yearly Global Economic Prospects report, the bank revealed that nearly two-thirds of the world’s countries have seen downward revisions in their growth forecasts compared to the last set of predictions issued six months ago. Global growth is now expected to reach only 2.3% in 2025—0.4 percentage points lower than the forecast made in January. For 2027, growth is projected at 2.6%. The bank downgraded growth forecasts for major economies, including Japan, Europe and the US. These revisions follow the implementation of a universal 10% tariff on all imports into the US, alongside steeper tariffs on steel and aluminium—policies introduced after Donald Trump assumed office. The sweeping trade measures led to sharp declines in global financial markets in early April. Although a trade ruling in May deemed most of the tariffs illegal, the Trump administration successfully appealed to keep them in place for now. In response to mounting trade tensions and their impact on private consumption and investor confidence, the World Bank lowered its growth outlook for the US for both 2025 and 2026. World Bank cuts global growth forecast to 2.3%, cites trade wars Interestingly, China’s forecasts remained unchanged. The bank cited China’s strong financial buffers as a shield against the "significant headwinds" posed by the current global political climate. "Against the backdrop of heightened policy uncertainty and increased trade barriers, the global economic context has become more challenging," the report stated. It also warned that the threat of further abrupt, trade-restrictive policies could sap market sentiment further. The World Bank added that an escalation in US tariffs could result in even deeper cuts to global growth, warning of potential inflationary pressures. Tariffs could also cause “global trade seizing up in the second half of this year, accompanied by a widespread collapse in confidence, surging uncertainty and turmoil in financial markets,” the report cautioned. It, however, stopped short of forecasting a full-blown global recession, putting the likelihood at under 10%. The report follows a similar downgrade by the Organisation for Economic Co-operation and Development (OECD), which now expects global growth to slow to a “modest” 2.9%, down from a prior estimate of 3.1%. Meanwhile, a fresh round of US-China trade negotiations has taken place in central London, as both sides seek a resolution to the escalating trade war. Source: With inputs from BBC  

President Donald Trump’s trade wars are expected to slash economic growth this year in the United States and around the world, the World Bank forecast Tuesday. Citing “a substantial rise in trade barriers’’ but without mentioning Trump by name, the 189-country lender predicted that the US economy – the world’s largest – would grow half as fast (1.4%) this year as it did in 2024 (2.8%). That marked a downgrade from the 2.3% US growth it had forecast back for 2025 back in January. The bank also lopped 0.4 percentage points off its forecast for global growth this year. It now expects the world economy to expand just 2.3% in 2025, down from 2.8% in 2024, reports AP. In a forward to the latest version of the twice-yearly Global Economic Prospects report, World Bank chief economist Indermit Gill wrote that the global economy has missed its chance for the “soft landing’’ — slowing enough to tame inflation without generating serious pain — it appeared headed for just six months ago. “The world economy today is once more running into turbulence,” Gill wrote. “Without a swift course correction, the harm to living standards could be deep.’’ America’s economic prospects have been clouded by Trump’s erratic and aggressive trade policies, including 10% taxes — tariffs — on imports from almost every country in the world. These levies drive up costs in the US and invite retaliation from other countries. Republicans urge Donald Trump and Elon Musk to end their feud The Chinese economy is forecast to see growth slow from 5% in 2024 to 4.5% this year and 4% next. The world’s second-largest economy has been hobbled by the tariffs that Trump has imposed on its exports, by the collapse of its real estate market and by an aging workforce. The World Bank expects the 20 European countries that share the euro currency to collectively grow just 0.7% this year, down from an already lackluster 0.9% in 2024. Trump’s tariffs are expected to hurt European exports. And the unpredictable way he rolls them out — announcing them, suspending them, coming up with new ones — has created uncertainty that discourages business investment. India is once again expected to be the world’s fastest-growing major economy, expanding at a 6.3% clip this year. But that’s down from 6.5% in 2024 and from the 6.7% the bank had forecast for 2025 in January. In Japan, economic growth is expected to accelerate this year – but only from 0.2% in 2024 to a sluggish 0.7% this year, well short of the 1.2% the World Bank had forecast in January. The World Bank seeks to reduce poverty and boost living standards by providing grants and low-rate loans to poor economies.

Amid mounting global economic uncertainties, South Asia's growth outlook is showing signs of strain, with Bangladesh no exception, according to the latest assessment by the World Bank. The multilateral lender has warned that the region’s economic momentum is losing steam due to a confluence of external shocks, tightening financial conditions, and domestic vulnerabilities, casting a shadow over near-term development prospects. Bessent criticises IMF, World Bank; sees ‘big deal’ opportunity with China A significant decrease in export growth and low investment have contributed to economic slowdown in Bangladesh in FY24, but growth is expected to rebound in the medium term, says the World Bank in its twice-yearly update, released on Thursday. The latest Bangladesh Development Update highlights the recent economic developments and outlook for the medium term, with a special focus on financial sector stability. After a fall in real GDP growth to 4.2 percent in FY24 from 5.8 percent in FY23, economic activity slowed further in FY25. The economy continues to face significant challenges, including investment moderation, elevated inflation and vulnerabilities within the financial sector. Meanwhile, external sector pressures have apparently eased, with robust growth in remittance inflows and exports bolstering the current account balance in FY25. Reforms in key sectors could create millions of jobs in Bangladesh: World Bank Real GDP growth is projected to further moderate to 3.3 percent in FY25 due to declining private and public investment. Political uncertainty and rising costs associated with borrowing and inputs are expected to constrain private investment growth and keep industrial growth subdued. Public investment will decline as the government reduces capital expenditure in FY25. The fiscal deficit is expected to remain under 5 percent of GDP in the medium term, with capital expenditure increasing only gradually. Inflation is likely to remain elevated in the near term. World Bank’s Vice President for South Asia Martin Raiser said multiple shocks over the past decade have left South Asian countries with limited buffers to withstand an increasingly challenging global environment. “The region needs targeted reforms to strengthen economic resilience and unlock faster growth and job creation. Now is the time to open to trade, modernize agricultural sectors, and boost private sector dynamism.” World Bank Interim Country Director for Bangladesh Gayle Martin mentioned that the country will need bold and urgent reforms to bolster the financial sector, facilitate trade and enhance domestic revenue mobilization. Real GDP is expected to rise gradually in the medium term, if backed by critical reforms. Inflation is expected to gradually subside in the medium term on the back of tight monetary policy, fiscal consolidation and easing import restrictions on key food commodities. Rising trade uncertainties are expected to put pressure on the external sector. World Bank’s Senior Economist Dhruv Sharma, who is also the co-author of the report, said the risks to the outlook are on the downside as uncertainties related to trade, persistent inflationary pressure, weak demand in Bangladesh's major export markets and intensifying financial sector vulnerabilities could weigh on growth. The Bangladesh Development Update is a companion piece to the South Asia Development Update, a twice-a-year World Bank report that examines economic developments and prospects in the South Asia region and analyses policy challenges countries are facing. The April 2025 edition, Taxing Times, projects regional growth to slow to 5.8 percent in 2025—0.4 percentage points below October projections—before ticking up to 6.1 percent in 2026. This outlook is subject to heightened risks, including from a highly uncertain global landscape, combined with domestic vulnerabilities including constrained fiscal space. It includes a special chapter analysing the state of domestic resource mobilization in the region. Despite often higher tax rates, the region's tax revenues remain below the average for emerging markets and developing economies. The report outlines how countries can address inefficiencies in tax policy and administration to increase revenues so that they can enhance resilience amid an increasingly challenging global economic environment.  

Treasury Secretary Scott Bessent levelled harsh criticism at the operations of the World Bank and the International Monetary Fund on Wednesday even as he tried to reassure nervous investors that the United States would maintain its global leadership role. “America first does not mean America alone,” he said in a speech to the Institute of International Finance. "To the contrary, it is a call for deeper collaboration and mutual respect among trade partners.” Although Bessent said the IMF and the World Bank are “falling short,” he stopped short of calling for the US to withdraw from the institutions as some conservatives have advocated. It was the latest example of how Bessent, a former hedge fund manager who keeps a close eye on the financial markets, has tried to calm the economic turmoil as President Donald Trump tries to rewire international trade through aggressive tariffs. After Bessent's remarks, reporters asked him about a Wall Street Journal article that said the huge US tariffs that the Republican president has levied on China could be cut in half, citing unidentified people familiar with the matter. Bessent said: “I’d be surprised if that discussion is happening." However, he said he expects “there’d have to be a de-escalation” from Washington and Beijing’s trade confrontation. Trump had said on Tuesday that the 145% tariffs on China could “come down substantially." And then on Wednesday, he told reporters that “everybody wants to be a part of what we're doing" and “everyone's going to be happy.” Bessent's speech in Washington represented a broadside against the IMF and the World Bank, which provide loans and other financial support around the world. He said the Trump administration “will leverage US leadership and influence at these institutions and push them to accomplish their important mandates.” EVs in the spotlight as China claims a leading global role at Shanghai's auto show Some of Bessent's criticisms echoed the Trump administration's efforts to root out progressive ideology from federal institutions. Bessent said the IMF “has suffered from mission creep” and “devotes disproportionate time and resources to work on climate change, gender and social issues.” He said there were similar problems at the World Bank, which he said “should no longer expect blank checks for vapid, buzzword-centric marketing accompanied by half-hearted commitments to reform.” One of the problems, Bessent said, is that China is still treated like a developing country, which gives it more favorable treatment from global institutions. With China as the second-largest economy in the world, he said, “it's an adult economy.” Despite growing friction between Beijing and Washington, Bessent said “there is an opportunity for a big deal here.” Bessent wants the US to boost manufacturing while China increases consumption, making its economy less reliant on flooding the globe with cheap exports. “If they want to rebalance, let’s do it together,” he said. “This is an incredible opportunity.” Beijing said Wednesday that “exerting pressure is not the right way to deal with China and simply will not work.”

Bangladesh could attract significant investments and create millions of jobs by implementing essential reforms in four sectors, according to a World Bank Group report released  on Tuesday at the Bangladesh Investment Summit 2025. The new Bangladesh Country Private Sector Diagnostic (CPSD) report showed that with targeted policy actions, Bangladesh could create 2.37 million jobs annually in the construction industry by supporting the construction of new housing units, generate over 664,000 formal jobs by expanding domestic paint and dye production, and create between 96,000 to 460,000 new jobs through digital financial services reforms. The report identifies four sectors-green readymade garments (RMG), housing for middle-income families, paint and dyes, and digital financial services-where policy actions can help remove barriers to private investment. The report outlined specific, near-term steps the government can take to attract investment in these sectors, generate jobs, remain competitive after graduating from Least Developed Country (LDC) status, and strengthen the domestic economy. Illegal wealth: ACC sues ex-Industries Minister Nurul Majid and wife Some of the specific actions include: Upgrading production in the readymade garments sector to comply with EU requirements, focusing on greening. sustainability, and labor standards. Strengthening the regulatory framework for digital mapping and property registration to improve access to mortgages by ensuring properties are valued at market rates rather than outdated tax-assessed values. Digitising customs classifications on imported inputs for paint and dyes to expedite clearance, enabling businesses to more easily comply with custom regulations. Establishing protocols to enable mobile financial services for merchant wallets with higher transaction limits facilitating wholesale transactions and making digital payments more accessible for businesses. "The World Bank Group's findings offer valuable guidance for shaping policies and strategies that promote private sector led growth and establish the institutional foundations essential for sustainable economic progress in Bangladesh,” said Chowdhury Ashik Mahmud Bin Harun, Executive Chairman, Bangladesh Investment Development Authority (BIDA). “The Interim government is dedicated to fostering growth by creating a more conducive business environment and supporting the expansion of emerging industries, ultimately leading to job creation,” he added. "With new and emerging challenges, Bangladesh needs urgent and transformative policy and institutional reforms to help firms expand domestically and compete globally and create millions of jobs for its youth entering the labor market every year," said Gayle Martin, World Bank Interim Country Director for Bangladesh. The World Bank Group stands ready to collaborate with the government and all stakeholders to help Bangladesh stay on strong and inclusive growth path, he said. "As part of the World Bank Group, IFC is committed to supporting Bangladesh to strengthen its private sector and drive economic growth," said Martin Holtmann, Country Manager IFC, Bangladesh, Bhutan, Nepal.  The Bangladesh CPSD launch was followed by a panel discussion on the report's findings by Lutfey Siddiqi, Bangladesh Government's Envoy for International Affairs, and Chowdhury Ashik Mahmud Bin Harun, Executive Chairman, (BIDA), as well as private sector leaders, including Arun Mitra, Head of Operations, Nippon Paint, Kamal Quadir, CEO, bKash, Selim R.F. Hussain, Managing Director, BRAC Bank, Sharif Zahir, Managing Director, Ananta Group and Srabanti Datta, Managing Director, ABC Real Estate.

Managing Director of Operations at the World Bank Anna Bjerde on Thursday reiterated the global lender's support to the interim government for rebuilding Bangladesh. "I want to express our support… count on us for whatever support you want," she told Chief Adviser Prof Muhammad Yunus during a meeting on the sidelines of the World Economic Forum annual meeting in the Swiss city. Dr Yunus urges Meta to intensify efforts against misinformation, fake news The World Bank Managing Director for operations said the bank would like to extend its support to Bangladesh in the second half of the year, Chief Adviser's Deputy Press Secretary Abul Kalam Azad Majumder told UNB. During the talks, they spoke briefly on the July uprising, reform initiatives of the interim government and the state of Bangladesh economy. DP World, Maersk eye major investments in Bangladesh ports Lamiya Morshed, SDGs Affairs Principal Coordinator of the Bangladesh government, and Ambassador Tareq Md Ariful Islam, Bangladesh’s permanent  representative to Geneva, also attended the meeting.