IMF forecasts 7.1pc economic growth for Bangladesh in 2019

Published: October 09, 2018 13:57:57 | Updated: November 04, 2018 21:35:07

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The growth domestic product (GDP) of Bangladesh is expected to grow by 7.1 per cent in 2019, according to the International Monetary Fund (IMF).

Economic growth may accelerate 7.0 per cent in 2023, IMF said in its World Economic Outlook 2018, which was released on the Indonesian resort island of Bali on Tuesday.

The IMF’s projection is close to the World Bank’s forecast of 7.0 per cent for fiscal 2018-19, released on Oct 2, reports bdnews24.

However, the projection is lower than the Asian Development Bank’s estimate of 7.5 per cent and the government’s 7.8 per cent for the fiscal.

The IMF also predicted that Bangladesh’s consumer prices would reach 5.8 per cent at the end of this year and 6.1 per cent next year.

However, the IMF cuts its global economic growth forecasts for 2018 and 2019, saying that trade policy tensions and the imposition of import tariffs were taking a toll on commerce while emerging markets struggle with tighter financial conditions and capital outflows.

It was now predicting 3.7 per cent global growth in both 2018 and 2019, down from its July forecast of 3.9 per cent growth for both years.

The downgrade reflects a confluence of factors, including the introduction of import tariffs between the United States and China, weaker performances by eurozone countries, Japan and Britain, and rising interest rates that are pressuring some emerging markets with capital outflows, notably Argentina, Brazil, Turkey and South Africa.

Some energy-rich emerging market countries have fared better due to higher oil prices, with Saudi Arabia and Russia seeing forecast upgrades.

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