Mastercard forecasts 7.3% inflation in 2024
However, the World Bank feared Bangladesh GDP growth to slow down to 5.6% next year
The Mastercard Economics Institute (MEI) has forecasted the consumer price inflation in Bangladesh to be at 7.3% next year, much lower than the government's 12-month average of 9.42% in November this year.
The global economic research arm of Mastercard also sounds optimistic about the Bangladesh GDP growth in the coming year as it forecasts the country's real GDP growth to be at 6.3%, near that of the Asian Development Bank's 6.5%.
However, the World Bank feared Bangladesh GDP growth to slow down to 5.6% next year.
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"Globally, 2024 should be marked by easing inflation pressures," said the MEI in its "Economic Outlook 2024: Striking a balance between prices and priorities" released on 11 December.
The institute expects a partial normalisation of the monetary policies by the world's central banks in 2024 as the inflation expectation in economies is calming down while economic growth may be subdued a bit.
"Central banks are likely at or close to peak rates," MEI expects some monetary easing in 2024 as inflation cools while growth remains subdued.
Meanwhile, global inflation will come down to 4.9% in 2024, from 6% this year and way above the pre-pandemic level of 2.7%, expects the MEI.
Removing inflation, the global real GDP growth in 2024 is likely to feel like that of 2023 as the MEI expects it to inch down to 2.9% from 3% this year.
"Consumers should continue to spend, owing to strength in the labour market. With price inflation cooling more than wage inflation, purchasing power should increase," Mastercard added.
Bangladesh's headline inflation fell to a seven-month low of 9.49% in November, according to Bangladesh Bureau of Statistics (BBS).
This marked a notable decline from October's 9.93%. The previous low of 9.24% was recorded in April before a surge to 9.94% in May.
In a year-on-year comparison, the headline inflation rate in November 2022 was 8.85%.
According to BBS data, both food and non-food inflation declined in November.
Food inflation eased to 10.76% in November from 12.56% in the previous month. Food inflation was 8.14% in November last year.
Non-food inflation eased to 8.16% in November from 8.30% in October. Non-food inflation was 9.98% in November last year
