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International Monetary Fund

IMF Forecasts Bangladesh's Economic Growth to 5.5% in Current Fiscal

Strategic Insights

— 2 min read

The International Monetary Fund (IMF) has recently forecasted Bangladesh's economic growth for the current fiscal year to 5.5 percent, surpassing the projections of the World Bank and the Asian Development Bank. This forecast was presented on Tuesday at the IMF-World Bank Spring Meetings in Washington, where the global monetary observer drew the economic growth picture of Bangladesh and the global economy in its World Economic Outlook (WEO) report. According to the IMF, Bangladesh's economy is expected to perform better than the developing and emerging Asian countries, with an average economic growth of 5.3 percent in the next fiscal year. The IMF has also forecasted inflation at a higher rate of 8.6 percent in the current fiscal, whereas the government aims to keep inflation at 5.6 percent.

Key Takeaways:

  • The IMF has forecasted Bangladesh's economic growth to 5.5 percent in the current fiscal, surpassing the World Bank and ADB's projections of 5.2 percent and 5.3 percent, respectively.
  • The IMF expects Bangladesh's economy to outperform developing and emerging Asian countries, with an average growth rate of 5.3 percent in FY2024.
  • Advanced economies are expected to experience a pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023.
  • The IMF has forecasted inflation at 8.6 percent in the current fiscal, higher than the government's target of 5.6 percent.
  • Bangladesh's current account balance is expected to remain negative, at 2.1 percent of GDP by the end of the current fiscal year.
  • The IMF has forecasted a global economic growth slowdown, from 3.4 percent in 2022 to 2.8 percent in 2023, with a light recovery to 3.0 percent in 2024.
  • South Asia is expected to grow at 6.4 percent in FY2023, with India forecasted to grow at 5.9 percent and China at 5.2 percent.
  • Among the emerging Asian nations, Cambodia and Vietnam are expected to grow at 5.8 percent in FY2024.

Statistics:

  • Global economic growth forecast: 3.4 percent in 2022, 2.8 percent in 2023, and 3.0 percent in 2024.
  • Advanced economies growth forecast: 2.7 percent in 2022, 1.3 percent in 2023, and 2.3 percent in 2024.
  • Bangladesh's economic growth forecast: 5.5 percent in the current fiscal year.
  • Inflation forecast: 8.6 percent in the current fiscal year.
  • Bangladesh's current account balance forecast: -2.1 percent of GDP by the end of the current fiscal year.
  • South Asia growth forecast: 6.4 percent in FY2023.

Sources:

  • "IMF Forecasts Bangladesh's Economic Growth to 5.5% in Current Fiscal", The Daily Star, April 11, 2023.
  • International Monetary Fund, World Economic Outlook (WEO) report, April 11, 2023.

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