Bangladesh’s Economy: ADB Raises Growth Forecast to 6% for FY23

The Asian Development Bank (ADB) has raised its growth forecast for Bangladesh’s economy, projecting a solid 6 percent growth for the Fiscal Year (FY) 2022-23. This upward revision comes as net exports performed better than expected, contributing to the country’s economic resilience.

The ADB’s latest forecast aligns closely with the estimate provided by the Bangladesh Bureau of Statistics (BBS), which also predicted a growth rate of 6.03 percent for FY23. Notably, the ADB had previously projected a lower growth rate of 5.3 percent for the same fiscal year in April.

Looking ahead to FY24, the ADB maintains its optimistic outlook, keeping the growth forecast for Bangladesh’s economy unchanged at 6.5 percent.

Explaining the factors behind the upgraded forecast for FY23, the ADB cited strong net exports, with imports experiencing a sharper decline than anticipated and export growth showing greater resilience than expected.

In its Asian Development Outlook (ADO) report for July 2023, the ADB emphasized its commitment to supporting the recovery of developing economies in Asia and the Pacific. It maintains the overall growth projection for the region at 4.8 percent, underpinned by robust domestic demand.

The ADB predicts a positive trend in inflation, with prices expected to approach pre-pandemic levels as fuel and food costs decline. In particular, inflation in developing Asia is forecasted to be around 3.6 percent this year, down from the April estimate of 4.2 percent.

However, the ADB has revised its inflation projections for Bangladesh and Nepal upward, taking into account specific circumstances in these countries.

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