ADB forecasts Bangladesh's economy to grow 6.1% in FY24
The Asian Development Bank (ADB) has released its April 2024 Asian Development Outlook, projecting Bangladesh's economy to experience a growth of 6.1% in the fiscal year 2023-24.
According to the report published on April 11, the Manila-based institution anticipates a further expansion with the GDP potentially reaching 6.6% in the following fiscal year of 2024-25.
The report highlights the significant role of garment exports in propelling the growth trajectory, stating, "In Bangladesh, garment exports will push growth up to 6.1% in FY24 and 6.6% in FY2025."
Compared to the 5.8% growth recorded at the end of the fiscal year 2022-23, the projected 6.1% GDP growth for FY24 marks a 0.3 percentage point increase.
ADB's analysis reflects a moderation in economic growth during fiscal 2023, attributed to monetary tightening in advanced economies leading to decreased external demand. Inflation saw a notable rise, while the current account deficit showed signs of narrowing.
However, despite these macroeconomic challenges, ADB remains optimistic about Bangladesh's economic prospects. It expects GDP expansion to pick up pace gradually in the upcoming years, fueled by resilient exports and the government's commitment to structural reforms.
ADB's outlook also suggests a gradual moderation in inflation rates, alongside a transition of the current account towards small surpluses.
Emphasizing the importance of reforms to enhance Bangladesh's competitiveness, ADB underscores that such measures are pivotal for the country's smooth transition from its current status as a least-developed country.
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