IMF Forecasts Bangladesh Economy to Grow 6.6% in FY22

(Bloomberg) -- Bangladesh’s economic growth is expected to increase to 6.6% in the fiscal year ending June 2022, according to the International Monetary Fund, as the coronavirus pandemic abates and policies remain accommodative.

Growth may rise to 7.1% the fiscal year after that, the IMF said in a statement on its website, citing an improvement in the external environment and progress with the domestic vaccination program.

“The uncertainty around the outlook remains high and risks are tilted to the downside,” IMF economist Rahul Anand was quoted in the statement as saying, following a visit to capital Dhaka from Dec. 5 to 19. 

Gross domestic product rose 5.43% for the financial year ended June 2021, according to a provisional estimate from the Bangladesh Bureau of Statistics. In June, the government proposed a 12% increase in the budget to spur economic activity and offset the pandemic’s fallout.

“An orderly exit from COVID-19 related financial policies remain important to reduce the buildup of financial sector vulnerabilities,” Anand said. “With the economy rebounding, the central bank should closely monitor inflationary pressures and stand ready to normalize,” he said.

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