ADB upgrades Bangladesh growth forecast to 6.1% GDP

The ADB’s Asian Development Outlook report released recently suggests that the gross domestic product (GDP) could further increase to 6.6 per cent in the subsequent fiscal.

Despite a challenging global economic scenario marked by weakened demand, Bangladesh’s traditional garment exports are anticipated to maintain growth momentum even as exporters are adapting to challenges posed by the dollar crisis by increasingly utilising local yarn and fabrics.

This strategic shift is expected to sustain the growth trajectory of the garment sector.

Comparatively, the ADB’s forecast outperforms the previous fiscal’s GDP expansion of 5.8 per cent. Moreover, it anticipates a moderation in average inflation to 8.4 per cent during the current fiscal, which is expected to support private consumption.

In the context of South Asia, Bangladesh is poised to achieve the second-highest GDP growth rate, following India’s 7 per cent projection for the ongoing fiscal. However, recent data from the Bangladesh Bureau of Statistics paints a slightly different picture, indicating a slowdown in economic growth during the October-December quarter of fiscal 2023-24.

Manufacturing output and services sector growth experienced declines, partially offsetting the marginal increase in agricultural production.

The World Bank also weighed in on Bangladesh’s economic outlook, suggesting subdued growth due to reduced private consumption affected by high inflation. The GDP is forecasted to expand by 5.6 per cent in fiscal 2023-24, below the pre-pandemic average annual growth rate of 6.6 per cent.

Looking ahead to fiscal 2024-25, the World Bank projects a modest recovery in private consumption, supported by a decrease in inflation, which is expected to drive growth at a rate of 5.7 per cent.

Fibre2Fashion News Desk (DR)