The International Monetary Fund (IMF) has revised downward its economic growth projection for Bangladesh for the fiscal year 2025–26, citing persistent political uncertainty, continuation of a tighter policy mix, rising trade barriers, and increasing stress in the banking sector.
The latest forecast is close to the government's projection of 5.5 percent growth for FY26.
"The timely formation of an interim government has helped stabilise political and security conditions, fostering a gradual return to economic stability. However, the economic outlook has worsened due to persistent political uncertainty, continued tight policy settings, rising trade barriers, and mounting stress in the banking sector."
The IMF said the country's Gross Domestic Product is expected to grow by 3.8 percent in the outgoing fiscal year—lower than the provisional estimate of 3.97 percent made by the Bangladesh Bureau of Statistics.
The lender also revised its inflation forecast for Bangladesh.
The agency had earlier projected 5.18 percent inflation for the FY26, in the World Economic Outlook published in April.
