The International Monetary Fund (IMF) on Tuesday lowered its projection of GDP growth for Bangladesh to 6% in the current FY23 from 6.7% as previously projected in April.
In its latest outlook released on Tuesday ahead of its annual meetings, the global lender depicted a bleak prospect of global growth, adding that worse was yet to come and that next year would feel like a recession with shrinking incomes and rising prices.
The growth projection for Bangladesh, made in the October of the IMF's World Economic Outlook 2022, is substantially lower than the 6.6% growth projected by the Asian Development Bank in September and 0.01 percentage point lower than the World Bank projection.
The IMF outlook, "Countering the Cost-of-Living Crisis", projected 9.1% inflation in Bangladesh in the current fiscal year, substantially higher than the April projection of 5.9%.
The inflation would come down to 6.8% in the next fiscal year, it forecasts.
The IMF projected 2.7% growth in world output for 2023, 0.9 percentage points lower than its April projection.
Global growth is expected to slow further next year, the IMF said Tuesday, downgrading its forecasts as countries grapple with the fallout from Russia's invasion of Ukraine, spiraling cost-of-living and economic downturns.
"This year's shocks will re-open economic wounds that were only partially healed post-pandemic," said International Monetary Fund economic counsellor Pierre-Olivier Gourinchas in a blog post accompanying the fund's latest World Economic Outlook.
More than a third of the global economy is headed for contraction this year or next, and the three biggest economies -- the United States, European Union and China -- will continue to stall, he warned.
In its report, the IMF trimmed its 2023 global GDP forecast to 2.7%, 0.2 points down from July expectations.
Its world growth forecast for this year remains unchanged at 3.2%.
The global growth profile is its "weakest" since 2001, apart from during the global financial crisis and the worst of the pandemic, said the IMF.
This reflects slowdowns for the biggest economies, including a US GDP contraction in the first half of 2022 and virus lockdowns in China on top of a property market crisis.
A key factor behind the slowdown is a shift in policy as central banks try to bring down soaring inflation, with higher interest rates starting to take the heat out of domestic demand.
Growing price pressures are the most immediate threat to prosperity, said Gourinchas in the report, adding that central banks are now "laser-focused on restoring price stability".
Global inflation is expected to peak at 9.5% this year before dropping to 4.1% by 2024.