IMF further lowers Bangladesh's growth to 5.7%

International Monetary Fund (IMF) again revised down the growth forecast for Bangladesh's economy to 5.7% for the current fiscal year 2023-24.

In the latest edition of the World Economic Outlook released on Tuesday (16 April), the real GDP growth in Bangladesh is expected to slow to 5.7% in the ongoing FY24, down from an estimated 6% growth a year ago while inflation would hit 9.3% in FY24, up from 9.0%.

The global lender also projected an improved 6.6% economic growth for the country in FY25 and a cooling of inflation down to 6.1%.

Earlier this month, the World Bank, in its latest Bangladesh Development Update, warned the economy will remain stressed in the near term, with real GDP growth to slow to 5.6% in FY24, due to inflation weighing on private consumption growth, and shortages of energy and inputs, rising interest rates, and financial sector vulnerabilities dampening investor sentiment.