IMF cuts GDP growth forecast for Bangladesh again
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The International Monetary Fund (IMF) has revised down the growth forecast for Bangladesh's economy for the ongoing fiscal year. The economy is now expected to grow by 5.7 percent in 2023-24, lower than the previous forecast of 6 percent. The GDP projection was initially 6.5 percent. The downward revision comes as the IMF raised its outlook for the global economy for 2024. The World Bank has forecast Bangladesh's real GDP growth to remain relatively subdued at 5.6 percent in FY24. The Asian Development Bank, however, has projected a 6.1 percent economic growth rate for Bangladesh. The IMF also projected a 6.8 percent GDP growth for India, 2 percent for Pakistan, 5.2 percent for the Maldives, 4.3 percent for Bhutan, and 3.1 percent for Nepal. Bangladesh has been experiencing an economic crisis due to escalated prices of global commodities and a dollar crunch. Inflation in Bangladesh is expected to stay above 9.3 percent in the current fiscal year and may decelerate to 6.1 percent in FY25. The slower growth is driven by a modest recovery in private consumption supported by a moderation in inflation. Persistent inflation is expected to weigh on private consumption growth, and shortages of energy and imported inputs combined with rising interest rates and financial sector vulnerabilities are expected to dampen investor sentiment.
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