IMF Projects 6.5% GDP Growth for Bangladesh in Current Fiscal Year

Representational Image || Photo: Collected

Representational Image || Photo: Collected

Bangladesh's GDP is expected to rise by 6.5 percent this fiscal year, according to the International Monetary Fund (IMF).

The forecast came from the IMF's World Economic Outlook, which was released on Tuesday and was headed "Recovery During a Pandemic: Health Concerns, Supply Disruptions, and Price Pressures."

Bangladesh is expected to increase by 6.4 percent this fiscal year, according to the World Bank. The IMF's prediction is only 10 basis points higher than the World Bank's.

Bangladesh's GDP is expected to increase by 7.5 percent in FY22, according to the IMF, which is higher than the government's objective of 7.2 percent. The prediction was lowered by one percentage point by the development agency.

Bangladesh is expected to expand at 4.6 percent in FY21, according to the research. The rate is 87 basis points lower than the BBS's 5.47 percent early projection.

Inflation is expected to be 5.7 percent in the current fiscal year, slightly higher than in the previous fiscal year, according to the IMF. According to the research, inflation will be mild in the coming years, dropping to 5.4 percent in 2026.

The Indian economy is expected to grow at 9.5 percent in FY21, according to the IMF. The lender lowered the country's growth forecast from 12.5 percent to 9.5 percent.

Due to Covid-19, the Indian economy contracted by 7.3 percent in FY20, but it is expected to rebound by 8.5 percent in FY22.

China's fiscal year growth is expected to be 5.6 percent, down from 8 percent in FY21, according to the research.

The analysis predicted that emerging and developing Asia would return in 2021, with an average growth rate of 7.2 percent, up from a negative growth rate of 0.8 percent in 2020.

According to the analysis, the region would grow by 6.3 percent in 2022 and 5.3 percent in 2026.

In 2021, the Maldives is expected to grow at a rate of 18.9%, the highest in the South Asia region.

Bangladesh's growth would be slower than that of other south Asian countries.

Due to an extremely high level of uncertainty, the report eliminated all predictions for the years 2021–26.

The global recovery is expected to be strong, but there will be increasing uncertainty.

After contracting by 3.1 percent in 2020, the Washington-based global banking institution predicted a better recovery in 2021 and 2022.

The research predicted global output growth of 5.9% this year, 0.1 percentage points lower than the July prediction. Next year, the global economy is expected to expand by 4.9 percent.

The lower revision for 2021, according to the IMF, reflects a deterioration for advanced economies – in part due to supply disruptions – and low-income developing nations, owing to worsening pandemic dynamics.

According to the research, the rapid spread of delta and the threat of additional varieties has heightened doubt about how quickly the pandemic can be defeated.

Topic : IMF Bangladesh

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