The International Monetary Fund (IMF) forecasts that Bangladesh’s GDP would rise by 5.5 percent in fiscal year 2023 and by 6.5 percent the following fiscal year.
The projection was released by the global lender in its newest report, World Economic Outlook: A Rocky Recovery, on Tuesday.
Earlier this month, the Asian Development Bank predicted 5.3 percent growth in Bangladesh’s GDP in the current fiscal year, while the World Bank predicted 5.2 percent growth.
The government, on the other hand, has set a budgetary growth target of 7.5%.
The IMF stated in its report that hopes for a gentle landing — with inflation falling and GDP remaining steady — have faded in the face of persistently high inflation and recent financial sector upheaval.
Although inflation has fallen as central banks have raised interest rates and food and energy prices have fallen, underlying pricing pressures remain sticky in a number of nations, with labor markets tight in many.
It also stated that the banking industry’s vulnerabilities have come to light, and fears of contagion have grown across the broader financial sector, including nonbank financial firms, as a result of the rapid rise in policy rates.
The baseline prediction, which assumes that recent financial sector pressures are managed, predicts that global growth will decrease from 3.4 percent in 2022 to 2.8 percent in 2023, before gradually rebounding to 3.0 percent five years later–the lowest medium-term forecast in decades.
Growth in advanced economies is predicted to fall sharply, from 2.7 percent in 2022 to 1.3 percent in 2023.
