ADB raises growth forecast for Bangladesh’s economy to 6.5% for FY24

The Asian Development Bank today raised the growth projection for Bangladesh's economy to 6.5 percent for the current fiscal year.

The global lender came up with the estimation in its updated report on "Asian Development Outlook (ADO) September 2023" released today.

"Bangladesh's gross domestic product (GDP) is expected to grow by 6.5 percent in the fiscal year 2024, compared with an estimated growth of 6.0 percent in FY 2023," the report said.

The ADB said the slightly faster growth forecast reflects an improvement in domestic demand and better export growth due to economic recovery in the euro area.

It said inflation is projected to ease from 9.0 percent in FY2023 to 6.6 percent in FY2024. The current account deficit is expected to slightly narrow from 0.7 percent of GDP in FY2023 to 0.5 percent of GDP in FY2024 as remittance growth improves, according to the report.

"The main risk to this growth projection is a further deterioration in export growth if global demand is weaker than expected" the ADB said.

ADB Country Director Edimon Ginting said, "The government is managing relatively well against the external economic uncertainties, while advancing infrastructure development and critical reforms to improve investment climate."

"These key structural reforms include to strengthen public financial management, enhance domestic resource mobilization, improve logistics, and deepen financial sector, which are critical for private sector development, export diversification and productive job creation in the medium term," said Ginting.

"Continued high oil prices also provide a good incentive to accelerate reforms to expand domestic renewable energy supply and achieve the country's climate change goals."