IMF lowers BD’s growth forecast amid policy tightening

Staff Reporter:

The International Monetary Fund (IMF) has revised down Bangladesh’s growth outlook, attributing the downgrade to tighter fiscal and monetary policies, growing uncertainty over US tariffs, and the upcoming national elections.

At a press briefing in Washington, DC, Krishna Srinivasan, director of the IMF’s Asia and Pacific Department, said the combination of stricter policy measures, trade uncertainty, and election-related risks has weighed on Bangladesh’s economic prospects.

He also noted persistent weaknesses in the financial sector that are constraining credit flows.
In its latest World Economic Outlook released Tuesday, the IMF projected Bangladesh’s GDP growth at 4.9 percent for FY26, down from the 5.4 percent forecast in June. Inflation is expected to remain high at around 8.5percent through the end of FY26, driven by lingering supply-side pressures. An IMF mission is set to visit Dhaka soon for the next review of the ongoing loan programme, focusing on fiscal reforms—particularly revenue mobilisation—and ensuring stability in the financial sector.