The latest report of the Internal Monetary Fund (IMF) on Asia-Pacific region forecasts that Bangladesh's GDP growth rate in the current fiscal year will overtake that of China.
The report also predicts that Bangladesh will be in second place, after Vietnam, in terms of GDP growth rate in Asia-Pacific in the next fiscal year.
According to the IMF's Regional Economic Outlook for Asia and Pacific May 2023 report, Bangladesh is expected to surpass both China and India in terms of growth in 2024.
In Bangladesh, GDP growth rate will slow down to 5.5 percent in 2023 because of demand-management measures, which is still higher than China's projected growth rate of 5.2 percent.
Read more: Bangladesh's GDP growth expected to pick up to 6.2% in FY2024: World Bank
But the economy of China is much bigger than that of Bangladesh.
The IMF report suggests that the recently approved Extended Fund Facility for Bangladesh will help address economic challenges caused by Russia's war in Ukraine, and the Resilience and Sustainability Facility arrangement will expand fiscal space to finance climate investment priorities and build resilience against long-term climate risks.
The report highlights the importance of international cooperation, particularly in securing financial assistance for climate change adaptation in vulnerable emerging markets in the region, including Bangladesh and the Pacific Islands.
Read More: Govt struggles to lift tax-GDP ratio to double digits