IMF Lowers Bangladesh Growth Forecast to 3.2 Percent

The International Monetary Fund reduced its economic growth forecast for Bangladesh for the 2026-27 fiscal year to 3.2 percent, down from a 4.3 percent projection made in April. In its World Economic Outlook report released Tuesday, the IMF attributed the downgrade to banking sector vulnerabilities, energy shortages, tight fiscal constraints, and subdued credit growth. This marks the fourth consecutive year of slowing growth for the country.

The IMF also projected that average inflation in Bangladesh will rise to 10.9 percent this fiscal year. This estimate is higher than the 8.6 percent forecast provided by the World Bank. Other multilateral lenders have issued similar revisions, with the World Bank lowering its growth forecast to 3.4 percent and the Asian Development Bank trimming its projection to 4 percent in September.

These international projections contrast with the targets set by the Government of Bangladesh, which aims to raise GDP growth to 6.5 percent and reduce inflation to 7.5 percent. To support these goals, parliament passed a record national budget of 9.38 trillion taka in June. Globally, the IMF expects growth to slow to 3.1 percent in 2026, citing volatile artificial intelligence investments and the war in the Middle East as primary drivers.