, April 8 -- World Bank on Wednesday warned that Bangladesh's economy is facing mounting challenges, including slowing growth, rising poverty, persistent inflation and a stressed banking sector, compounded by global uncertainties.

In its latest Bangladesh Development Update released on Wednesday, the World Bank projected economic growth to slow to 3.9% in FY2025-26, marking a third consecutive year of deceleration alongside increasing poverty levels.

The report said ongoing conflict in the Middle East could further strain the economy through higher inflation, increased energy subsidy burdens, and pressure on the current account driven by costlier imports, weaker exports and declining remittances.

With thin foreign exchange buffers, tig...