ADB cuts Bangladesh's GDP growth forecast to 6.2%
The Asian Development Bank (ADB) has adjusted Bangladesh's economic growth forecast to 6.2% for the current fiscal year, marking a decline of 0.3 percentage points.
This revision, as stated in the ADB's December 2023 Asian Development Outlook report, attributes the deceleration to several key factors impacting the country's economy.
Previously, in September, the Manila-based lender had predicted a growth rate of 6.5% for Bangladesh's gross domestic product (GDP).
The report highlights a combination of factors contributing to this downward revision, including moderate growth in exports and manufacturing. Additionally, it cites challenges such as an economic slowdown in significant export markets, shortages in power and energy, and persistent high inflation as contributors to the decreased growth forecast.
The ADB's report acknowledges the presence of potential positive influences, stating that uncertainties surrounding the upcoming January elections receding could pose upside risks to the projected growth.
Notably, the International Monetary Fund (IMF) also adjusted its growth forecast for Bangladesh earlier in October, reducing it to 6% for the current fiscal year, down from its previous estimate of 6.5%. Similarly, the World Bank, another Washington-based institution, revised down Bangladesh's economic growth projection to 5.6%. This downward adjustment was made in light of sustained high inflation rates and challenges related to external payments.
In response to these challenges, the Bangladesh government has revised its GDP growth target for the current fiscal year to 6.5%, a decrease from its initial target of 7.5%. This revised target accounts for both internal and external pressures affecting the country's economic landscape.
In the previous fiscal year, Bangladesh experienced a GDP growth of 6.03%, showcasing a slight deceleration in economic expansion.
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