The International Monetary Fund (IMF) has revised its economic growth forecast for Bangladesh to 3.8% for the fiscal year 2024-25, while projecting an average inflation rate of approximately 11%.
The donor organization made this announcement in a statement on Wednesday. Previously, in October, the IMF had predicted a 4.5% growth rate for the same period.
The statement attributed the reduced growth projection to public unrest, floods, and strict policy measures, estimating that real GDP growth for 2024-25 will decline to 3.8%. However, the IMF expects growth to rebound to 6.7% in the following fiscal year.
Regarding inflation, the IMF stated that the average rate is likely to remain around 11% during 2024-25. However, it anticipates inflation will drop to 5% in 2025-26, driven by stricter policies and easing supply pressures.
The World Bank's forecast for Bangladesh's GDP growth remains higher than the IMF’s latest projection.
In October, the World Bank projected 4% growth for 2024-25, though this was a reduction from its earlier forecast of 5.7% in April, citing recent political instability in Bangladesh.
Both forecasts suggest that economic growth for Bangladesh in 2024-25 will be the lowest since the 2019-20 fiscal year, which was impacted by the COVID-19 pandemic.
