The IMF also anticipates that inflation in the country will remain around 11% in FY25
The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US, September 4, 2018. REUTERS/Yuri Gripas/File Photo
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The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US, September 4, 2018. REUTERS/Yuri Gripas/File Photo
The International Monetary Fund (IMF) has lowered the economic growth forecast for Bangladesh to 3.8% for the fiscal year 2024-25 (FY25), down from its projection of 4.5% in October.
“Real GDP growth is projected to slow to 3.8% in FY25 due to output losses caused by the public uprising, floods, and tighter policies but is expected to rebound to 6.7% in FY26 as policies relax,” the IMF said in a statement today (18 December).
The IMF also anticipates that inflation in the country will remain around 11% (annual average year-on-year) in FY25 before declining to 5% in FY26, supported by tighter policies and easing supply pressures.
IMF’s latest projection is lower than the World Bank’s prediction for Bangladesh’s GDP growth.
In October, the World Bank downgraded its outlook for Bangladesh, predicting economic growth of just 4% for FY25, down from an April forecast of 5.7%, citing significant uncertainties around the political and economic outlook following the recent political turmoil.
As per the prediction by the two international agencies, Bangladesh’s FY25 economic growth would be the lowest since FY20 when the Covid-19 pandemic affected world economies.