ADB cuts GDP growth to 6.1pc

Asian Development Bank (ADB) today revised down Bangladesh’s growth forecast to 6.1 percent for the fiscal year of 2015.

Blaming “lingering political unrest” in the country and subdued export growth to the cause, ADB expects the growth to rise to 6.4pc in 2016.

Last September, the ADB revised up its projection for Bangladesh’s growth to 6.4pc in 2015, what was lowered down again today in its “Quarterly Economic Update.”

Bangladesh government had a plan to boost the growth to 7.3 percent in the budget placed for 2015 fiscal year, what was termed ambitious from several quarters.

If the political situation stabilises, consumer and investor confidence is likely to rise, thereby it will stimulate demand and strengthen growth momentum, ADB said.

In addition, infrastructure constraints are expected to ease with the completion of ongoing projects, particularly the power plants, the report added.

Growth is expected to rise to 6.4pc in FY2016, aided by higher remittance and export growth, along with the continued economic recovery in the US and the eurozone area, it added.