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BD inflation may hit 10.9pc, IMF lowers growth projection

Published : Tuesday, 13 October, 2026 at 11:39 AM
Observer Online Report
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The International Monetary Fund (IMF) has projected Bangladesh’s economic growth to drop to 3.2 per cent while inflation may surge to 10.9 per cent in the current fiscal year.

The IMF released these projections in its latest World Economic Outlook (WEO) report on Tuesday.

In April, the lender estimated GDP growth at 4.3 per cent for FY26-27. The latest projection cuts the growth rate by 1.10 percentage points. The forecast was 3.5 per cent in July.

The IMF also raised the inflation outlook significantly. The Washington-based lender previously projected average inflation at 6 per cent. It has now raised the estimate to 10.9 per cent.

The lower growth forecast and higher inflation projection reflect growing pressure on Bangladesh's macroeconomic stability.

The IMF's growth projection is lower than forecasts made by other global lenders. The World Bank projected 3.4 per cent GDP growth for Bangladesh in FY26-27. The Asian Development Bank (ADB) estimated it at 4 per cent.

According to IMF data, Bangladesh recorded 3.6 per cent GDP growth in FY25-26. Growth was 3.5 per cent in the preceding fiscal year.

Meanwhile, the IMF projected India's economy to grow by 7 per cent and Bhutan's by 6.9 per cent in the same fiscal year.

The new report came during the ongoing IMF-World Bank annual meetings in Bangkok. Bangladesh's economic conditions, structural reforms, and external funding remain key focus areas at the conference.


-SA


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