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IMF forecasts 7.1% growth for 2019

IMF forecasts 7.1% growth for 2019

Bangladesh's economy is expected to grow by 7.1 percent in 2019, according to the International Monetary Fund. Economic growth may accelerate 7 percent in 2023, IMF said in its World Economic Outlook 2018, which was released on the Indonesian resort island of Bali on Tuesday (Oct 9), media reports said.

The IMF’s projection is close to the World Bank’s forecast of 7 percent for fiscal 2018-19, released on Oct 2.

However, the projection is lower than the Asian Development Bank’s estimate of 7.5 percent and the government’s 7.8 percent for the fiscal.

The IMF also predicted that Bangladesh’s consumer prices would reach 5.8 percent at the end of this year and 6.1 percent next year.

However, the IMF cuts its global economic growth forecasts for 2018 and 2019, saying that trade policy tensions and the imposition of import tariffs were taking a toll on commerce while emerging markets struggle with tighter financial conditions and capital outflows.

It was now predicting 3.7 percent global growth in both 2018 and 2019, down from its July forecast of 3.9 percent growth for both years.

The downgrade reflects a confluence of factors, including the introduction of import tariffs between the United States and China, weaker performances by eurozone countries, Japan and Britain, and rising interest rates that are pressuring some emerging markets with capital outflows, notably Argentina, Brazil, Turkey and South Africa.

Some energy-rich emerging market countries have fared better due to higher oil prices, with Saudi Arabia and Russia seeing forecast upgrades.