Bangladesh's economy to grow 4.7% in FY26: IMF
The International Monetary Fund has projected Bangladesh’s economy will grow by 4.7% in fiscal year 2026, maintaining its earlier forecast, before slowing slightly to 4.3% in FY27.
The IMF also revised its inflation forecast upward, expecting consumer prices to rise by 9.2% in FY26, higher than its previous estimate. However, inflation is projected to ease significantly to around 6% in FY27, suggesting potential relief for households if stabilisation measures take effect.
The government, meanwhile, has set a more ambitious target of 6.5% growth for the next fiscal year as part of its long-term goal of transforming Bangladesh into a trillion-dollar economy by 2034. Officials have also aimed to bring inflation down to 7.5% in FY27, slightly above the IMF’s projection.
Compared to other development partners, the IMF’s outlook appears relatively upbeat. The World Bank recently forecast growth at 3.9% for FY26, rising to 4.6% in FY27, while warning of persistent structural challenges such as weak revenue collection, banking sector vulnerabilities and declining private investment. Similarly, the Asian Development Bank projected 4% growth in FY26 and 4.7% in FY27.
Economists say Bangladesh’s economic trajectory is being shaped by multiple external pressures, including global inflation, supply chain disruptions and the economic fallout from the Middle East conflict, which has affected energy prices and remittance flows. Domestically, high inflation and pressure on foreign exchange reserves remain key concerns.
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