Central bank projects GDP growth to be lower than govt estimate

The Bangladesh Bank on Tuesday projected lower growth for the national economy than the estimate the government has made in the national budget.

In its Monetary Police Statement for July-December, the central bank said the economy would grow 6.1% in the July 2026-June 2027 fiscal year, lower than the 6.5% government target.

Continued impacts of global supply chain disruptions, slow private investment growth and political uncertainties since the middle of 2024 would continue to weigh on the national economy through 30 June 2027, the Bangladesh Bank said in the latest Monetary Policy Statement.

Despite disagreeing with the government on the annual growth outlook, the central bank lauded the government’s fiscal policies included in the national budget.

The BNP government has planned a balance between growth-supportive policies and fiscally prudent expansion, it said.

The policies are focused on development expenditure, annual development plan, tax reforms, expenditure rationalisation, targeted subsidies and social protection programmes, according to the Monetary Policy Statement.