IMF scales down Bangladesh’s GDP growth to 4.6% for 2021
BI Report || BusinessInsider
The IMF headquarters building is seen in Washington. Photo: File
The International Monetary Fund (IMF) has further revised down Bangladesh’s GDP growth to 4.6 percent for 2021, down from 5 percent it projected in April this year.
The IMF disclosed the forecast in its report titled “World Economic Outlook” released globally on Tuesday ahead of the IMF and the World Bank Group’s annual meeting that began on the day.
The IMF in its April outlook report predicted that Bangladesh’s GDP will grow at 5 percent in 2021. However, the IMF said that Bangladesh will bounce back next year with 6.5 percent GDP growth.
Uncertainty centring the Covid-19 pandemic has forced the IMF to cut global and many countries’ growth forecasts.
“The global recovery continues but the momentum has weakened, hobbled by the pandemic,” The IMF said in the outlook report.
It said fuelled by the highly transmissible Delta variant, the recorded global Covid-19 death toll has risen close to 5 million and health risks abound, holding back a full return to normalcy.
The IMF said pandemic outbreaks in critical links of global supply chains have resulted in longer-than-expected supply disruptions, further feeding inflation in many countries.
“Overall, risks to economic prospects have increased, and policy trade-offs have become more complex,” said the IMF.
Compared to its July forecast, the global growth projection for 2021 has been revised down marginally to 5.9 percent and is unchanged for 2022 at 4.9 percent. This modest headline revision, however, masks large downgrades for some countries. The outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics.
The downgrade also reflects more difficult near-term prospects for the advanced economy group, in part due to supply disruptions. Partially offsetting these changes, projections for some commodity exporters have been upgraded on the back of rising commodity prices.