Bangladesh’s economic growth has slowed recently, while inflation has remained elevated. GDP growth decelerated to 3.7 per cent in FY25 from 4.2 per cent in FY24 and 5.8 per cent in FY23.
The economy continues to face mounting macro-financial challenges from weak tax revenue and financial sector vulnerabilities, with significant downside risks stemming from delays in the implementation of bold fiscal and financial reforms, it noted.
Following the recent economic slowdown, Bangladesh’s GDP growth is expected to rebound to 4.7 per cent in FY26 and FY27, and accelerate to around 6 per cent over the medium term, the IMF said.
The economy continues to face mounting macro-financial challenges from weak tax revenue and financial sector vulnerabilities, with key downside risks from delays in the implementation of bold reforms, it noted.
Policies should focus on safeguarding fiscal sustainability and strengthening macro-financial stability, while implementing comprehensive structural reforms over the medium-term to strengthen governance, create jobs and promote economic diversification, it recommended.
Inflation is projected to remain elevated at 8.9 per cent in FY26 before subsiding to around 6 per cent in FY27. Risks to the outlook are tilted to the downside, mainly from delayed or inadequate policy action and reversals of exchange rate reform and fiscal discipline, the IMF noted in a release.
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