GDP growth is expected to bounce back to 6% in FY26
The growth is 1.6 percentage points lower than the provisional estimate
The Asian Development Bank (ADB) has projected Bangladesh’s GDP growth rate to slow to 4.3 percent in fiscal year (FY) 2025, reflecting a subdued outlook amid political uncertainty, supply disruptions and tight monetary policy.
The GDP growth target may be brought down to 5.25 percent in the revised budget for the current fiscal year due to the damage caused by multiple floods and the interim government’s contractionary monetary policy to contain high inflation.
Bangladesh recorded its lowest economic growth in the past five quarters in the last quarter of fiscal 2023-24 due to contractionary monetary and fiscal policies to tackle the dwindling forex reserves and high inflation.
While a privileged minority, sitting in their high castles, continue to enjoy a larger and larger share of the fruits of “development,” it is becoming obvious that the vast majority are increasingly struggling.
Bangladesh’s economy has grown at a faster pace, albeit marginally, in the current fiscal year than the previous one although the production of industrial goods and agricultural commodities recorded reduced growth.
International Monetary Fund (IMF) has defended revising down its forecast for Bangladesh’s GDP growth in fiscal year 2023-24, saying it was “pretty reasonable” amidst various ongoing challenges, including elevated inflation.
The International Monetary Fund (IMF) has revised down growth forecast for Bangladesh’s economy to 6 percent for the fiscal year 2023-24, lower from its previous projection of 6.5 percent.
It seems the Bangladesh economy is stuck in a time warp, going by the latest edition of the Labour Force Survey unveiled yesterday.
The current low revenue base in Bangladesh could be further undermined by the measures taken in the budget for FY2023, including corporate tax cuts, American credit rating agency Fitch said in its latest report.
Specific policy incentives are needed to stimulate the economy and revive the labour market.
An economy without an independent source of data is like an aircraft flying without its airspeed sensors.
Bangladesh Bank yesterday substantially relaxed the policy for rescheduling defaulted loans, allowing defaulters to repay term loans over a maximum period of eight years whereas it was previously two years.
The Bangladesh Bank (BB) has revealed its Monetary Policy Statement (MPS) for the period of July-December 2022 at a time when the country, and the world, is going through tough economic challenges.
The Bangladesh government has set a target of 7.5 per cent growth of the country’s gross domestic product (GDP) in the upcoming fiscal year of 2022-23 beginning from July.
The International Monetary Fund has revised down its economic growth projection for Bangladesh to 6.4 percent for the current fiscal year largely because of Russia-Ukraine war and supply chain disruptions.
Finance Minister AHM Mustafa Kamal today said the GDP growth of the country would be higher than the government's estimate, not only the World Bank's projection.
The central bank yesterday unveiled a cautiously optimistic monetary policy for the second half of the fiscal year, keeping room to provide adequate supply of quality credit to support the growth and inflation targets.
