ADB cuts Bangladesh's GDP growth forecast to 6.2%

The Asian Development Bank (ADB) has revised downward the growth forecast for Bangladesh's economy to 6.2 percent for the current fiscal year ending in June 2024.

"This is due to moderate growth in exports and manufacturing amid an economic slowdown in major export markets, power and energy shortages, and continued high inflation. Upside risks to the forecast include receding uncertainties over next January's elections," said the ADB in its December issue of Asian Development Outlook.

The Manila-based multilateral lender earlier forecasted 6.5 percent growth of Bangladesh's gross domestic product (GDP) for 2023-24 fiscal year.

The ADB's projection comes after the International Monetary Fund (IMF) in October this year cut growth forecast for Bangladesh's economy to 6 percent for 2023-24 fiscal year, lower from its previous projection of 6.5 percent.

Before the IMF, the World Bank lowered economic growth projection for the South Asian nation for 2023-24 fiscal year to 5.6 percent amid sustained high inflation and external payment challenges.

The ADB report also cited higher inflation in Bangladesh and said: "Despite several efforts to reduce inflation, the monthly rate in Bangladesh was close to double digits in July–October due to rising food inflation."

"Inflation is expected to ease in the coming months on continued contractionary monetary policy, measures taken to secure a market-based exchange rate, lower global commodity prices, and a better crop outlook."