Moody’s Affirms Bangladesh’s Ratings while Predicting the Economy to Decelerate over the Next 18 Months

May 27, 2020 | Updated at May 27, 2020

In its latest ratings report for Bangladesh, Moody's Investors Service (Moody’s), has predicted Bangladesh's economy to slow down in the next 18 months due to fall in exports of readymade garments (RMG) as well as fall in consumption and investments driven by the on-going pandemic. According to the ratings report, Bangladesh’s ratings have been affirmed at Ba3 with a stable outlook.

Moody's projects that Bangladesh’s gross domestic product (GDP) growth will decline to 4.6% in 2020 and to 4.2% in 2021, driven by the temporary slowdown in global growth. However, the rating agency expected Bangladesh to maintain GDP growth above the median that for Ba-rated countries despite the current situation.