Dhaka, Oct. 7 -- After a volatile first half of FY25, Bangladesh's economy rebounded strongly in the second half, buoyed by robust exports, record remittances, and rising foreign exchange reserves, according to the World Bank's latest Bangladesh Development Update released on Tuesday.

The report argues that the country is poised for an ongoing growth trajectory in the medium term, but stresses that urgent reforms are needed to sustain momentum and create jobs, especially for young people and women. It projects GDP growth to climb from 4.0% in FY25 to 4.8% in FY26 and then to 6.3% in FY27.

External pressures eased in FY25 as a market-based exchange rate was adopted, foreign exchange reserves stabilized, the current account deficit narrow...