The Asian Development Bank (ADB) has adjusted down Bangladesh’s economic growth projection to 6.2% from the initial 6.5%, citing factors such as restrained export and manufacturing growth, energy shortages, and persistent inflation.
The ADB’s December 2023 report highlights challenges, including uncertainties around the upcoming January elections. While South Asia’s other economies are generally on track with growth projections, Bangladesh faces upward inflation revisions to 3.6%, attributed to persistent price pressures. The report anticipates inflation easing in the coming months due to various policy measures.
The inflation adjustment also applies to Nepal, driven by continued price pressures and expectations of higher international oil prices in 2024. The report acknowledges the uncertainty in oil forecasts, noting the sensitivity of prices to global developments and geopolitical factors.
