IMF cuts Bangladesh's growth to 4.5 percent for FY25
After the World Bank, the International Monetary Fund (IMF) has now brought down Bangladesh's growth forecast for this year as political uncertainty, industrial unrest and floods weigh heavily on economic activities.
In its latest World Economic Outlook report, the IMF cut Bangladesh’s growth projection by 2.1 percentage points, now estimating a 4.5% growth rate for FY25. This marks the lowest growth since FY20, when the global COVID-19 pandemic caused a 3.4% increase in GDP.
In June, the IMF had forecasted a 6.6% growth rate for Bangladesh, but recent developments have prompted this revision.
Last week, the World Bank also downgraded its growth estimate for Bangladesh to 4% for FY25, citing uncertainties due to political turmoil and limited data availability. The GDP growth could range between 3.2% and 5.2%, depending on how the situation unfolds.
Similarly, the Asian Development Bank (ADB) previously reduced its growth forecast to 5.1%, down from 6.6%, attributing the decline to supply chain disruptions caused by political unrest earlier this year.
The IMF did not specify the exact reasons behind the reduced growth outlook or high inflation in its report. However, an IMF team that visited Bangladesh in September noted a significant slowdown in economic activity, with inflation remaining high due to recent instability and severe flooding.
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