Bangladesh economic growth is expected to be 4.7% in FY26, says International Monitory Fund, as IMF Executive Board Concludes 2025 Article IV Consultation with Bangladesh. A press release in this regard was issued on 30 January 2026 in its website. IMF forecast the same growth rate, i.e., 4.7% for the FY27 too.
According to The Financial Express, in its previous economic outlook that published in October 2025, IMF forecasted 4% GDP growth for FY25, 4.8% for FY 26 and 6.3% for FY27. It downgraded all three forecasts in January 2026 by 0.3%, 0.1% and 1.6% respectively.
The New York based global lender opined that the economy continues to face mounting macro-financial challenges from weak tax revenue and financial sector vulnerabilities, with significant downside risks stemming from delays in the implementation of bold fiscal and financial reforms.
It also recommended that the policies should focus on safeguarding fiscal sustainability and strengthening macro-financial stability, while implementing comprehensive structural reforms over the medium-term to strengthen governance, create jobs, and promote economic diversification.
The executive board assessments on which the expected economic growth for FY26 and forecasted growth for FY27 is built are:
- Bangladesh’s economic growth has slowed recently, while inflation has remained elevated.
- The economy is expected to recover gradually over the medium term.
- The interim authorities’ efforts to stabilise the economy following the 2024 uprising and in the run up to upcoming national elections.
- The lender stressed the need for ambitious fiscal reforms.
- The board highlighted the urgent need for a credible banking sector reform strategy consistent with international standards to restore banking sector stability.
- They concurred that maintaining a tight policy mix is necessary to keep rebuilding foreign reserves and reducing inflation.
- IMF underscored that comprehensive structural reforms are essential to unlock Bangladesh’s economic potential and promote inclusive growth as Bangladesh is graduating from LDC status.
