The Asian Development Bank (ADB) has cut its growth forecast for Bangladesh’s gross domestic product (GDP) to 6.6% for the current fiscal year of 2022-23 from a 7.1% projection made in April this year.
In its September update report of the Asian Development Outlook (ADO) 2022, released on Wednesday (21 September), the ADB, Bangladesh’s growth momentum continued in 2022, but it will slow in 2023 as lower consumption expenditure on weaker export demand and income, an uncertain outlook, and domestic production constraints.
The moderately lower growth forecast reflects slower domestic demand and weaker export prospects due to slower growth in advanced economies, ADB said.
Inflation is projected to rise from 6.2% in FY2022 to 6.7% in FY2023.
The current account deficit is expected to narrow from 4.1% of GDP in FY2022 to 3.6% of GDP in FY2023 as imports slacken and remittances increase.
The main risk to this growth projection is a slowdown in exports caused by global uncertainty over the prolonged war in Ukraine, it added.
In April of this year, the ADB projected 7.1% growth for Bangladesh in the current year.