Dhaka, Dec. 25 -- Bangladesh is currently experiencing a moderate stagflationary phase, with persistently high inflation coinciding with a slowdown in economic growth, according to Dr. Zahid Hussain, former lead economist at the World Bank's Dhaka office.

Speaking at a roundtable titled "Is the economy trapped in a vicious cycle?" at BDBL Bhaban in Dhaka on Wednesday he noted that while GDP growth remains positive at 3.5percent-4percent, inflation continues in the high single digits, driven largely by exchange rate depreciation and rising food prices.

"By definition, stagflation occurs when growth falls below trend levels while inflation stays elevated. Bangladesh has exhibited these tendencies over the past three to four years," Dr. Hu...