New Delhi, Oct 14 — The International Monetary Fund (IMF) has cut its economic growth forecast for Bangladesh by 25.58 per cent to 3.2 per cent for FY 2026-27 against 4.3 per cent projected in April, a report has said.
According to analysis by The Daily Star, the IMF also projected average inflation in Bangladesh to rise to 10.9 per cent in the current fiscal year, reversing the easing seen in FY26 when average consumer price inflation fell to 8.7 per cent, it added.
The IMF's inflation projection is higher than the World Bank's forecast of 8.6 per cent for FY27 made earlier this month.
However, both multilateral lenders have cut their growth forecasts for Bangladesh.
On the other hand, the report mentioned that India is projected to grow by 7 per cent in both FY27 and FY28.
“In South Asia, India is projected to grow by 7 per cent in both FY27 and FY28, among the fastest rates in the region,” the report said.
The World Bank recently revised down its forecast for Bangladesh to 3.4 per cent, while the Asian Development Bank trimmed its projection to 4 per cent in September, according to the report.
"It would be the fourth consecutive year of slowing economic growth, as energy shortages, banking sector vulnerabilities, subdued credit growth and tight fiscal constraints continue to weigh on Bangladesh’s economy," according to The Daily Star.
On the global economy, the IMF expects growth to slow to 3.1 per cent in 2026, down from 3.5 per cent last year with the war in the Middle East and a surge in artificial intelligence-related investment pulling economies in different directions, it said.
The IMF has projected advanced economies to grow by 2.1 per cent this year and emerging and developing economies by 3.7 per cent.
The IMF said the global outlook masks growing disparities, with 32 economies expected to account for 95 per cent of global growth, down from 54 in April. About 47 per cent of economies have had their growth forecasts downgraded.