IMF Anticipates Gradual Return to Economic Normalcy in Bangladesh, According to Reuters

WASHINGTON (Reuters) – The International Monetary Fund (IMF) announced on Monday that the swift establishment of an interim government in Bangladesh has contributed to the country’s stabilization, with the new leadership taking steps to address ongoing economic challenges.

Following a staff visit from September 24-30, the IMF’s review commended the Bangladeshi authorities for their economic adjustments amid difficulties such as slowing growth, high inflation, and strain on foreign exchange reserves.

The IMF stated, "The timely formation of an interim government has helped stabilize political and security conditions, fostering a gradual return to normalcy in the economy."

This review comes after Nobel laureate Muhammad Yunus assumed office last month following the removal of Prime Minister Sheikh Hasina amidst violent protests. Additionally, a delegation from the U.S. has expressed its commitment to providing economic support during their recent visit to the country.

IMF officials reiterated their dedication to assisting Bangladesh and its citizens while collaborating with authorities on a reform agenda to strengthen the economy. They highlighted their support for policy adjustments, including ongoing monetary tightening and streamlining non-essential capital expenditures, in response to the current economic landscape. The IMF also noted concerns regarding declining tax revenues and increasing spending pressures.