ADB forecasts 6.1% GDP growth for Bangladesh in FY24

Bangladesh's economy is forecasted to expand by 6.1 percent in fiscal year 2023-24, buoyed by robust export performance, as per the Asian Development Bank.

The growth trajectory suggests a potential uptick to 6.6 percent in the subsequent fiscal year, as highlighted in today's Asian Development Outlook by the Manila-based lender.

Despite subdued global demand, Bangladesh anticipates sustained growth in exports of its traditional low-end garments, driven by the utilization of local yarn and fabrics amidst the prevailing dollar crisis.

The projected expansion for 2024 surpasses the 5.8 percent GDP growth recorded in the year leading up to June 2023.

Additionally, the ADB anticipates that average inflation will ease to 8.4 percent in the ongoing fiscal year, fostering growth in private consumption.

In South Asia, Bangladesh is projected to achieve the second-highest GDP growth rate, following India's 7 percent, for the current year.

This projection from the ADB follows closely on the heels of the Bangladesh Bureau of Statistics reporting a halving of economic growth to 3.78 percent in the October-December quarter of fiscal 2023-24, marking the slowest pace in three quarters.

This deceleration was primarily attributed to a sharp decline in manufacturing output growth due to reduced domestic consumption.

Additionally, the services sector witnessed a significant slowdown during the quarter, offsetting the marginal increase in agricultural production.