IMF forecast hints at Bangladesh’s economic recovery

Bangladesh’s economy is showing signs of recovery, with the latest forecast from the International Monetary Fund (IMF) projecting a significant upturn.

In its World Economic Outlook released on Tuesday night (Washington time), the IMF projected a GDP growth of 3.8 per cent for Bangladesh in the current fiscal year (2024-25).

The outlook further anticipates an increase in growth to 6.5 per cent in the following fiscal year (2025-26), reports UNB.

The report was unveiled on the second day of the World Bank-IMF Spring Meetings, currently taking place in Washington, USA.

Alongside global trends, the IMF updated country-specific data in this outlook. It projects inflation in Bangladesh to remain at 10 per cent.

The country has been grappling with persistent inflationary pressure over the past two years.

According to the Bangladesh Bureau of Statistics (BBS), inflation stood at 9.35 per cent in March, with an annual average of 10.26 per cent over the past year.

The Awami League government initially targeted a GDP growth rate of 6.75 per cent when it presented the budget for FY 2024-25 in June.

But, the interim administration recently revised the target downward to 5.25 per cent, citing ongoing financial challenges, business stagnation, and political instability following the change in government.

Earlier this month, the Asian Development Bank (ADB) projected a GDP growth of 3.9 per cent for Bangladesh this fiscal year—slightly higher than the IMF’s updated estimate.

Globally, the IMF expects average GDP growth to be 2.8 per cent, while the average for Asia is forecast to be 4.5 per cent.

A 15-member Bangladesh delegation, led by Finance Advisor Dr Salehuddin Ahmed, is participating in the Spring Meetings, which began on April 21 and will continue until April 26.