The International Monetary Fund (IMF) announced on Friday that Bangladesh’s economy is poised for a recovery, with the Gross Domestic Product (GDP) expected to climb to 4.7% in the 2026 fiscal year. This projection follows a period of stagnation and recent economic headwinds that have pressured the South Asian nation’s growth.
Path to 4.7% Growth
According to the IMF’s latest statement, the anticipated rebound is contingent on the government’s ability to execute critical fiscal and financial reforms. Specifically, the organization highlighted the need to improve tax revenue collection and resolve long-standing weaknesses within the banking and financial sectors.
The IMF’s long-term outlook for Bangladesh includes:
- Immediate Rebound: A projected growth rate of 4.7% for FY26.
- Medium-Term Acceleration: An expected rise to approximately 6% as structural reforms take hold.
- Revenue Mobilization: A focus on expanding the tax base to fund essential public services and infrastructure.
Inflation and Economic Stability
While growth is expected to pick up, the IMF warned that consumers will continue to face high prices in the near term. Inflation is projected to stay at an elevated 8.9% throughout FY26.
However, the international lender expects these pressures to ease by the following year. Projections suggest inflation will drop to roughly 6% in FY27, provided that current monetary policies remain effective.
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