But it added that spillovers from the “tightening of global financial conditions, and still elevated international commodity and food prices, coupled with domestic vulnerabilities, has led to persistently high inflation and declining foreign exchange (FX) reserves.”
“This has exacerbated pressures on the economy and heightened the complexity of macroeconomic challenges,” it said.
The IMF expects Bangladesh’s economy to grow by an inflation-adjusted 5.4 percent in the 2024 financial year — down slightly from six percent last year — before rebounding in 2025.
The Fund forecasts that inflation will remain elevated at around 9.4 percent this year, before easing to around 7.2 percent next year, “on the back of the continued tighter policy mix and projected lower global food and commodity prices.”