<span style="background-color: transparent; color: #000000;">Bangladesh's economy faces considerable challenges with global economic uncertainty, rising inflationary pressure, energy shortages, balance of payment deficit and a revenue shortfall, says the World Bank (WB) in its twice-a-year update released in Dhaka on Tuesday. <br />''<br />''The Bangladesh Development Update calls for accelerating the implementation of structural reforms, including trade reforms and export diversification which will help Bangladesh navigate the current challenges and sustain growth momentum.<br />''<br />''The WB report points out that the GDP growth rate for Bangladesh for the current FY2023 has decelerated to 5.2 percent  due to rising inflation, tighter financial conditions, disruptive import restrictions, and global economic uncertainty. In FY2024, growth is expected to pick up to 6.2 percent. World Bank Country Director for Bangladesh and Bhutan Abdoulaye Seck said WB stands ready to support Bangladesh with reforms to accelerate growth and strengthen resilience.<br />''<br />''Referring to the macro-economic indicators, WB report says the Balance of Payments (BoP)  deficit of Bangladesh reached USD 7.2 billion in the first half of FY2023, up from USD 5.3 billion in FY2022. It created considerable pressure on foreign exchange reserves of the country. Calling the multiple exchange rate system as a factor, WB report urged Bangladesh to move towards a single, market based exchange rate to restore external balance. <br />''<br />''The banking sector also faced challenges with tighter liquidity and increasing Non-Performing Assets (NPA). However Bangladesh remained at a low risk of debt distress, says the report. World Bank Senior Economist and co-author of the report Bernard Haven said that diversifying exports and improving competitiveness will help Bangladesh achieve upper-middle income status by 2031. For this, it will be important for Bangladesh to reduce both tariff and non-tariff barriers. A comprehensive reform program can strengthen regional integration, particularly with South Asia and Southeast Asia.</span><br />