ADB forecasts Bangladesh's GDP projection to 6.6% from 7.1%

The Asian Development Bank (ADB) has downsized its projection for Bangladesh's gross domestic product (GDP) growth to 6.6 per cent in the current fiscal year.

Earlier in April, it forecasted 7.1 per cent growth for Bangladesh for the current fiscal year of 2022-23.

The global lander came up with the projection today in its update report of the Asian Development Outlook (ADO) in September 2022.

In its report, the ADB said Bangladesh's growth momentum continued in 2022, but it will slow in 2023 as lower consumption expenditure on weaker export demand and income, an uncertain outlook, and domestic production constraints.

The ADB said the moderately lower growth forecast reflects slower domestic demand and weaker export prospects due to slower growth in advanced economies.

However, the lander also projected that the country's inflation may rise to 6.7 per cent in the fiscal year of 2023 from 6.2 per cent in FY2022.

ADB Country Director Edimon Ginting said the government is navigating the prolonged external economic uncertainties relatively well and has implemented appropriate policies to reduce the external imbalance.

"But turbulent times like these are also a good time to accelerate reforms that would improve the country's growth prospects in the medium term."

These reforms include improving domestic resource mobilisation, deepening the financial market, and enhancing competitiveness to promote the creation of productive jobs in the private sector, Ginting said.