The Statement of IMF Mission for 5th Review under the Extended Credit Facility with Bangladesh hailed Bangladesh's progress in macroeconomic stability. Key points are as follows:
- Despite a moderation in exports, foreign exchange reserves have continued to increase and have reached adequate levels, inflation has declined, the fiscal deficit is contained and public debt is on a downward path;
- With a calmer political environment economic activity and strong domestic demand, real GDP growth is expected at about 6.25% in FY2015;
- However, the introduction of a new VAT, a key government reform to boost fiscal space for development spending, is facing delays.