Bangladesh’s economic growth is projected to slow down further while inflation faces an upward trajectory in the current fiscal year, according to the latest World Economic Outlook of International Monetary Fund (IMF) released during the IMF-World Bank Annual Meetings.
The 2026 Annual Meetings are taking place in person from October 12 through October 18 in Bangkok, Thailand.
In its latest projections, the IMF forecasts that Bangladesh's Gross Domestic Product (GDP) growth could dip to 3.2 percent in the fiscal year 2026-27.
Concurrently, average inflation is expected to rise to 10.9 percent during the same period, stoking fresh concerns over economic recovery, purchasing power, and investment climates.
For the preceding FY26, the IMF estimates final GDP growth to settle at 3.6 percent, with average inflation projected at 8.7 percent. This indicates that the current fiscal year will likely compound economic pressures through both subdued growth and heightened inflationary burdens.
Globally, the IMF projects world economic growth at 3.1 percent in 2026 and 3.4 percent in 2027. Global average inflation is expected to stand at 4.7 percent in 2026, easing to 4.1 percent in 2027.
The latest outlook aligns with recent assessments by the World Bank, which highlighted persistent challenges in Bangladesh's economy, including sluggish private investment, weakened employment generation, energy and gas shortages impacting industrial output, and rising non-performing loans and capital shortfalls within the banking sector.
Both global lenders have underscored the critical need for comprehensive structural reforms, focusing on restoring stability in the financial sector, ensuring energy security, enhancing revenue collection, and rationalising broad subsidies to redirect targeted support towards vulnerable and low-income populations.
The Annual and Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group each year bring together central bankers, ministers of finance and development, private sector executives, civil society representatives, and academics to discuss the state of the global economy and issues of international concern, such as the growth outlook, financial stability, and poverty reduction.