STAFF CORRESPONDENT

The US-Israel war on Iran is casting a long shadow over Bangladesh’s economy, threatening to slow growth, stoke inflation, deepen poverty, cut jobs, and raise debt burdens, according to the World Bank’s latest Bangladesh Development Update.

“The Middle East conflict is likely to materially affect Bangladesh’s economy, compounding existing vulnerabilities,” the World Bank said in the report released yesterday at a press briefing in Dhaka.

Higher import costs, weaker exports, and falling remittances are expected to strain the current account balance, while rising energy prices and pressure on the exchange rate could intensify already elevated inflation.

Real GDP growth is now projected to fall to 3.9 percent in FY26, down from an earlier forecast of 4.6 percent, reflecting spillover effects from the war alongside pre-existing weaknesses in export growth and continued sluggish public and private investment.

The human cost, the report suggests, will be steep. Poverty has already risen for three consecutive years. Before the conflict, around 17 lakh people were expected to move out of poverty this year; that number is now projected to be just 5 lakh, meaning 12 lakh people could stay below the poverty line.

Around 6 lakh jobs are also expected to be lost.

Rising prices account for about 10 percent of the increase in poverty, widening

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