B Mirror Report: The International Monetary Fund (IMF) has downgraded Bangladesh’s economic growth outlook for the 2026-27 fiscal year to 3.2 per cent, warning of a challenging economic environment as inflationary pressures remain persistent.

The latest projection, released on Tuesday in the IMF’s World Economic Outlook report in Bangkok, is lower than the 3.5 per cent growth forecast the lender issued in July. The report was unveiled during the 2026 Annual Meetings of the IMF and the World Bank Group.

Alongside the weaker growth outlook, the IMF expects Bangladesh’s inflation rate to reach 10.9 per cent in FY27, substantially higher than its earlier projection of 6.0 per cent made in April.

Price pressures have remained elevated since the beginning of the fiscal year. Headline inflation stood at 8.32 per cent in July, eased slightly to 8.26 per cent in August and edged up to 8.34 per cent in September.

The IMF’s latest assessment follows a series of downward revisions by major development partners, highlighting mounting concerns over Bangladesh’s economic momentum.

The World Bank, in its outlook released on October 6, projected the country’s GDP growth at 3.4 per cent in FY27. It attributed the subdued outlook to weaknesses in the energy and banking sectors, sluggish investment and continued inflationary pressure. The bank expects inflation to average 8.6 per cent during the current fiscal year.

The Asian Development Bank (ADB) has also revised its growth estimate downward. In September, the Manila-based lender reduced its FY27 forecast to 4.0 per cent from 4.5 per cent.

In its Asian Development Outlook September 2026 report, the ADB identified persistent energy shortages, stress in the banking sector and high inflation as major obstacles to faster economic growth. It also projected inflation at 9.0 per cent for the fiscal year.

The IMF’s latest forecast is more pessimistic than those of both the World Bank and the ADB, suggesting that Bangladesh could face a slower expansion than previously anticipated alongside continued pressure on household purchasing power.

The revised projections place renewed emphasis on the challenges facing the economy, particularly the need to ease inflation, strengthen the financial sector, address energy constraints and revive investment to support sustainable growth.