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How Bangladesh went from an economic miracle to needing IMF help

MUMBAI — It was a rags to (relative) riches story.

In 50 years, Bangladesh went from what U.S. diplomats once called a “basket case” to what the World Bank now calls ”an inspiring story of growth.” Its garment factorieshelped pull millions out of poverty, especially first-time female workers.

Life expectancy rose by more than 50%. Infant mortality declined by almost 90%.

Last year, the International Monetary Fund predicted Bangladesh’s gross domestic product would soon exceed that of Denmark or Singapore. Per capita, its GDP is already bigger than neighboring India’s. Just months ago, Bangladesh was grabbing headlines as an “economic miracle.”

But all of that is now threatened by a global economic slowdown that’s wreaking particular havoc in developing countries like Bangladesh. On Wednesday, the IMF reached a preliminary deal with Bangladesh to provide a $4.5 billion rescue package of loans.

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