The Asian Development Bank (ADB) has revised its economic growth forecast for Bangladesh, reducing it to 5.1 percent for the fiscal year 2024-25.
This adjustment has come in light of political unrest, supply chain disruptions, and recent severe flooding.
Previously, the Manila-based lender had projected a growth rate of 6.6 percent for the same period.
The political turmoil witnessed in July and August, characterised by mass protests, along with the flooding, has had a detrimental impact on Bangladesh’s Gross Domestic Product (GDP), disrupting the production of goods and services nationwide.
In its latest report, the ADB indicated that fiscal and monetary policies are likely to remain tight, which may further dampen consumption demand and keep inflation elevated.
The bank also highlighted that its forecast is subject to considerable uncertainty, with downside risks overshadowing the macroeconomic outlook.
The ADB identified these risks as primarily stemming from ongoing political instability, a fragile law-and-order situation, and vulnerabilities within the financial sector.
Notably, the ADB’s revised forecast is lower than the World Bank’s estimate from June, which projected Bangladesh’s economic growth at 5.7 percent for FY 2024-25.