Global uncertainty may hamper GDP momentum, inflation: Bangladesh Bank

31 Mar '23

1 min read

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Persistent global uncertainty may hamper Bangladesh's gross domestic product momentum and inflation, the country's central bank recently cautioned.
The economic outlook is subject to significant uncertainties, which may arise from ongoing unfavourable global developments.
The inflationary situation, however, is expected to improve again, the bank added.

Persistent global uncertainty may hamper Bangladesh’s gross domestic product (GDP) momentum and inflation, the country’s central bank has cautioned. The economic outlook is subject to significant uncertainties, which may arise from ongoing unfavourable global developments, the bank said in a recent publication.

The country’s inflationary situation, however, is expected to improve again as the inflationary scenarios in the key trading partner economies improve, the Bangladesh Bank (BB) noted.

Prices in Bangladesh have been falling since August when they reached a 10-year high of 9.52 per cent due to rising commodity costs in global markets. In December and November, the consumer price index (CPI) rose by 8.71 per cent and 8.85 per cent respectively.

The government has reduced the GDP growth objective for fiscal 2022-23 (FY23) from 7.5 per cent to 6.5 per cent following recent macroeconomic developments. The real GDP growth in FY22 was revised downward to 7.1 per cent from 7.25 per cent.

Non-performing loans in the banking sector dropped in the second quarter of this fiscal, reflecting the central bank’s relaxed policy approaches for loan repayment to tackle the ongoing macroeconomic issues, the publication was quoted as saying by Bangladeshi media reports.

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