IMF projects GDP growth rate at 7.6pc

FE Report | Published: September 19, 2019 10:13:53 | Updated: September 24, 2019 13:44:52

The IMF nameplate is displayed on a wall at the headquarters during the World Bank/International Monetary Fund Spring Meetings in Washington on April 11, 2008 — Reuters/Files

The International Monetary Fund (IMF) projected that the economy of Bangladesh would grow 7.6 per cent in fiscal year (FY) 2019-20.

The IMF projected the GDP growth rate at 8.0 per cent for FY 2018-19, according to the IMF's latest Staff Report on Article IV Consultation of Bangladesh released on Wednesday.

The Washington-based global monetary watchdog also projected that Bangladesh's inflation, as measured by the consumers' price index (CPI), rose to 5.6 per cent in the FY '20 on annual average basis from 5.5 per cent of the previous fiscal.

Meanwhile, the current account deficit is projected to be around 2.0 per cent of GDP, according to the IMF near-term outlook.

"Sustained growth in the ready-made garment sector with abundant low-cost labour has helped the economy to diversify away from the agricultural sector to a more manufacturing-based economy," the IMF explained.

It also said remittance inflows from Bangladeshis overseas continue to play an important role in promoting private consumption and external stability.

"While the economy still has significant potential with favourable demographics, to ensure sustainability and resilience of growth, the country needs to keep upgrading its macroeconomic policy framework and advance a range of structural measures," it noted.

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