The International Monetary Fund (IMF) on Thursday forecasted a 3.5 per cent growth of Bangladesh’s Gross Domestic Product (GDP) in fiscal year 2026-27, further lowering from its projection this April at 4.8 per cent.

“Economic growth is projected to moderate to 3.5 per cent in FY27 and remain below 3.0 per cent over the medium term amid continued fiscal and financial sector pressures,” the IMF said as an IMF staff team concludes Dhaka visit.

It suggested that advancing reforms to strengthen revenue mobilisation and address weaknesses in the banking sector would help improve the medium-term outlook.

Bangladesh continues to face significant fiscal, financial sector, and inflation challenges. These pressures have been compounded by the war in the Middle East, which has increased import and subsidy costs and renewed inflationary pressures, amid elevated banking sector stress, it said.

syful-islam@outlook.com