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Bangladesh’s GDP (gross domestic product) growth, which stands at 5.8 per cent in the outgoing fiscal year, will fall to 5.7 per cent in the 2024-25 fiscal year, the Mastercard Economics Institute (MEI) has predicted.
Despite the country’s inflation being projected to rise to 9.80 per cent at the end of FY24, the rate would decline to 8.0 per cent in FY25, the global technology company said.
Persistently high inflation is weighing on consumer purchasing power, it added.
The revelations were made at a roundtable discussion with the theme “Global & Bangladesh Outlook & Risks” organised by MEI at a city hotel on Thursday.
For FY25, the government’s GDP growth target has been set at 6.8 per cent, signalling a recovery from the provisional estimate of 5.8 per cent for the Revised Budget FY24.
Meanwhile, the inflation target has been set at 6.5 per cent for FY 25.
While presenting a keynote paper, David Mann, Chief Economist for Asia-Pacific and MEI warned that sustained dollar appreciation could further exacerbate economic instability.
The country’s economy continues to grapple with challenges due to weak domestic and external demand, he said.
Mr Mann discussed the macroeconomic environment globally and specifically in South Asia and Bangladesh, emphasising the changing consumer spending patterns due to necessary and discretionary goods, alongside experiences in e-commerce and luxury travel.
He elaborated on concepts such as growth prospects, inflation trends, interest rates, foreign exchange volatility, export capability, remittance flow, and developments in savings and credit markets.
The event was attended by renowned economists, chairman, chief executive officers, and managing directors from Mastercard partner banks and financial institutions.