The International Monetary Fund (IMF) has kept Bangladesh's economic growth projection nearly unchanged for the current and next fiscal years, while revising down its inflation forecasts.

In its World Economic Outlook released today from Washington, the IMF projected Bangladesh's gross domestic product (GDP) growth at 3.76 percent for the current fiscal year (FY 2024–25), slightly down from the 3.8 percent forecast made by its mission that visited Dhaka in December last year.

For FY26, it has revised down the GDP growth prediction for Bangladesh to 6.53 percent from the previous forecast of 6.7 percent.

The IMF has not discussed Bangladesh in detail in the latest outlook. But Chris Papageorgiou, who led an IMF mission earlier this month, said, "The Bangladeshi economy continues to face multiple challenges amidst elevated global uncertainty."

The reduced growth projections reflect ongoing economic disruptions caused by domestic unrest, tighter monetary and fiscal policies, and heightened uncertainty impacting investment.

"To address the mounting external financing gap and ensure continued disinflation, near-term policy tightening remains essential," Papageorgiou said.

On inflation, the IMF revised its projection for FY25 to 9.98 percent, down from its previous forecast of 11 percent.

For FY26, it said Bangladesh's inflation might ease to 5.18 percent, which is slightly higher than its earlier forecast of 5 percent.

"Sustaining the pace of structural reforms is crucial for tackling the country's economic challenges," Papageorgiou added.

"Improving governance and increasing transparency will play a vital role in creating a more favourable investment environment, boosting foreign direct investment (FDI), and expanding export sectors beyond ready-made garments."