ADB trims Bangladesh's growth forecast to 5.1% due to political unrest
The Asian Development Bank (ADB) has lowered its forecast for Bangladesh's economic growth to 5.1% for the current fiscal year, taking into account adverse effects from political unrest in July and August, as well as recent floods.
The Asian Development Outlook (ADO) of September, released today (25 September), also said the forecast is highly uncertain as significant downside risks muddy the macroeconomic outlook.
These risks arise mostly from continuing political uncertainty, lack of security in the country's law and order situation, and financial sector vulnerabilities, it said.
"Furthermore, fiscal and monetary policies are expected to be tight, subduing consumption and investment demand," reads the report.
In April this year, the Manila-based multilateral lender had projected that Bangladesh's real GDP growth would grow by 6.6% for the fiscal year 2024-25.