The Asian Development Bank-ADB has reduced Bangladesh’s GDP growth forecast from 6.50 percent to 6.20 percent in the current financial year.
ADB published the data in the December edition of its Asian Development Outlook on Tuesday. The Asian Development Bank (ADB) cut its forecast for Bangladesh’s gross domestic product (GDP) growth, mainly due to declining exports, energy and power crises and high inflation slowing the economy.
The report says, ‘Uncertainty is prevailing in the country’s economy around the national elections. Along with this, this amendment has been brought in consideration of energy and power crisis and continued inflation. Due to economic slowdown in major export markets, the country’s export and manufacturing sectors are experiencing moderate growth.
The ADB report also said, ‘The growth forecast for the fiscal year ending June 30 has been lowered. However, the report did not mention exactly how much the growth forecast has been reduced. An official of the ADB office in Dhaka told the media that 6.20 percent growth has been predicted for Bangladesh.
In addition, ADB believes that the inflation of Bangladesh in the current financial year may increase further. However, ADB did not say how much it will increase. According to ADB’s calculations, there are four countries on the list where inflation is likely to increase this year. Other countries are Kazakhstan, Myanmar and Korea.
The agency forecasts average GDP growth in Asia to 4.9 percent in 2023. Earlier, ADB had forecast that GDP growth in Bangladesh could be 6.50 percent in the current fiscal year. And the government has set a target of seven and a half percent growth in the current financial year.