The Asian Development Bank (ADB) has reduced Bangladesh`s economic growth forecast for the current fiscal year, which ends in June 2024, to 6.2 percent.
"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 international lender previously forecasted 6.5 percent growth in Bangladesh`s GDP for the fiscal year 2023-24.
The ADB`s projection comes after the International Monetary Fund (IMF) reduced its growth forecast for Bangladesh`s GDP to 6% for the fiscal year 2023-24, down from 6.5 percent previously.
Before the IMF, the World Bank reduced the South Asian country`s economic growth forecast for the fiscal year 2023-24 to 5.6 percent due to persistently high inflation and external payment issues.
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."
