The IMF cuts Bangladesh’s FY27 growth forecast to 3.2% and projects 10.9% inflation, while India is expected to grow by 7% in FY27 and FY28….reports Asian Lite News Desk
The International Monetary Fund (IMF) has cut Bangladesh’s economic growth forecast for the 2026-27 fiscal year to 3.2 per cent from the 4.3 per cent projected in April, while warning of renewed inflationary pressure, according to a report by The Daily Star. The IMF expects average inflation to rise to 10.9 per cent during the current fiscal year, reversing the easing recorded in FY26.
According to the report, average consumer price inflation in Bangladesh fell to 8.7 per cent in FY26. The IMF’s latest inflation projection is higher than the World Bank’s forecast of 8.6 per cent for FY27, issued earlier this month.
Both institutions have lowered their growth projections for Bangladesh, reflecting continuing pressure on the country’s economy.
The World Bank recently revised its forecast for Bangladesh’s economic growth to 3.4 per cent, while the Asian Development Bank (ADB) lowered its projection to 4 per cent in September, the report said.
The Daily Star cited energy shortages, vulnerabilities in the banking sector, subdued credit growth and tight fiscal constraints as factors weighing on economic activity.
“It would be the fourth consecutive year of slowing economic growth, as energy shortages, banking sector vulnerabilities, subdued credit growth and tight fiscal constraints continue to weigh on Bangladesh’s economy,” the report said.
India’s growth forecast remains at 7 per cent
In contrast, India is projected to record economic growth of 7 per cent in both FY27 and FY28, placing it among the fastest-growing economies in South Asia, according to the report.
“In South Asia, India is projected to grow by 7 per cent in both FY27 and FY28, among the fastest rates in the region,” it said.
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The contrasting projections highlight the differing growth outlooks for the region’s two major economies, with Bangladesh facing continued domestic economic challenges while India is expected to maintain stronger expansion.
IMF projects slower global growth in 2026
The IMF also expects global economic growth to slow to 3.1 per cent in 2026, down from 3.5 per cent in the previous year. According to the report, the war in the Middle East and a surge in investment related to artificial intelligence are pulling economies in different directions.
Advanced economies are projected to grow by 2.1 per cent this year, while emerging and developing economies are expected to expand by 3.7 per cent.
The IMF said the global outlook masks widening differences between economies. Its projections indicate that 32 economies will account for 95 per cent of global growth, compared with 54 economies in April.
Around 47 per cent of economies have also had their growth forecasts downgraded, the report said, underlining the uneven outlook for global economic expansion.
