The International Monetary Fund (IMF) updated its growth estimate for Bangladesh’s economy for the current fiscal year (FY24) on Tuesday, bringing it down to 5.7%.
The international lender updated its forecast in its World Economic Outlook, which was made public that same day.
This is the second time that Bangladesh’s economic growth forecast has been lowered.
It reduced its earlier forecast from 6.5% growth for FY24 to 6% growth in October of last year.
The IMF growth forecast outlined a number of regional and worldwide issues, such as ongoing high unemployment, low remittance flows, persistently high inflation, and a declining industrial investment target.
The Asian Development Bank (ADB) predicted last week that Bangladesh’s GDP will grow 6.1% in FY24 due to exports, which coincides with the IMF’s growth projection.
The World Bank predicted earlier this month that Bangladesh’s growth would be muted due to lower private consumption brought on by high inflation.
The GDP is expected to grow by 5.6% in FY24, which is less than the 6.6% average annual growth rate for the ten years prior to the Covid-19 pandemic.