IMF lowers Bangladesh's GDP growth for FY26 to 5.4%
The economic outlook worsened due to persistent political uncertainty, continuation of tighter policy mix, rising trade barriers, and increasing stress in the banking sector, said IMF
The International Monetary Fund (IMF) has lowered Bangladesh's GDP growth projection to 5.4% for the 2025-26 fiscal year from its earlier forecast of 6.5%.
In a press release issued yesterday (23 June), the global lender said the economic outlook has worsened due to persistent political uncertainty, continuation of tighter policy mix, rising trade barriers, and increasing stress in the banking sector.
"Bangladesh's macroeconomic challenges have increased since the popular uprising in the summer of 2024, which led to the ouster of the previous government. The timely formation of an interim government has helped stabilize political and security conditions, fostering a gradual return to economic stability," reads the release.
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Meanwhile, for the current fiscal year, the IMF now expects a 3.8% growth rate, which is lower than the Bangladesh Bureau of Statistics' estimate of 3.97%.
