ADB lowers growth forecast for Bangladesh

Asian Development Bank (ADB) has revised down the economic growth projection for Bangladesh but said inflation might creep up further during the current fiscal year of 2024-25.

According to Asian Development Outlook July 2024 published last week, Bangladesh's economy might grow 6.5 percent in this fiscal year, which is lower than its forecast in April of 6.6 percent, owing to sluggish growth of the industrial sector.

The Manila-based lender's projection is lower than the government's 6.75 percent growth target for the economy.

The ADB's forecast came just before the country witnessed five days of severe disruptions in economic activities amidst an internet outage, violence centring a movement for reforming quota at public jobs and subsequent curfew to control the situation.

The multilateral lender said monthly inflation rates in Bangladesh continued to be near double digits in the first 11 months of FY2024 and may persist due to high domestic food prices.