ADB lowers growth forecast for Bangladesh
The Asian Development Bank (ADB) has revised its economic growth forecast for Bangladesh, indicating that inflation could further rise during the 2024-25 fiscal year.
In the Asian Development Outlook released in July 2024, the ADB predicts that Bangladesh's economy will grow by 6.5 percent this fiscal year, down from its earlier estimate of 6.6 percent made in April. This adjustment is attributed to the slower growth of the industrial sector.
This new projection from the Manila-based institution is below the Bangladeshi government's target of 6.75 percent growth.
The ADB's revised forecast comes in the wake of significant disruptions in Bangladesh's economic activities. The country recently experienced five days of turmoil due to an internet outage, violence related to a movement for public job quota reforms, and a subsequent curfew to manage the unrest.
Additionally, the ADB noted that monthly inflation rates in Bangladesh have remained close to double digits in the first 11 months of FY2024. This trend is likely to continue, driven by high domestic food prices.
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