Dhaka: The Asian Development Bank (ADB) Wednesday said the Bangladeshi economy is forecast to grow faster than initially expected in 2023, following better export performance.
ADB in its Asian Development Outlook (ADO) for July 2023 says the Bangladeshi economy will grow at least 6 percent in 2023-2024, up from the bank’s April forecast of 5.3 percent.
For the current 2023-2024 fiscal, the Manila-based lender has kept the forecast for the growth of Bangladesh’s economy unchanged at 6.5 percent.
“The higher estimate of 6 percent for FY23 ended on June 30 reflects strong net exports as imports fell more sharply than expected and export growth slowed less than expected,” said the ADB in its ADO for July 2023.
The ADB maintains its growth outlook for developing economies in Asia and the Pacific at 4.8 percent this year, as robust domestic demand continues to support the region’s recovery.
Inflation is expected to continue falling, approaching pre-pandemic levels as fuel and food prices decline, it said, forecasting inflation in developing Asia at 3.6 percent this year, down from its April forecast of 4.2 percent.
The ADB however revised up inflation projections for Bangladesh and Nepal.
Regarding the performance of Bangladesh’s economy, the ADB said manufacturing firms of all sizes leveraged supportive government policies to contribute to growth.
“Crop losses to floods, cyclones, and droughts were partly offset by subsidies, incentives, and other measures. The service sector was buoyed by higher warehouse and support activities and health and social services,” it added.
On the demand side, growth in public consumption outpaced expectations, as did public investment.