The Asian Development Bank (ADB) has revised its growth projection for Bangladesh’s economy upward to 6.5% for the current fiscal year.

This updated estimate comes from the ADB’s latest report, the ‘Asian Development Outlook (ADO) September 2023.’

According to the report, Bangladesh’s gross domestic product (GDP) is anticipated to expand by 6.5% in the fiscal year 2024, compared to the estimated 6.0 percent growth in FY 2023. 

The ADB attributes this slightly faster growth forecast to improvements in domestic demand and increased export growth, driven by the economic recovery in the euro area.

The ADB also predicts a decline in inflation, projecting it to ease from 9.0% in FY 2023 to 6.6%  in FY 2024. 

The current account deficit is expected to narrow slightly, from 0.7% of GDP in FY 2023 to 0.5% of GDP in FY 2024.

ADB Country Director Edimon Ginting emphasized the government’s effective management of external economic uncertainties while advancing infrastructure development and critical reforms to enhance the investment climate. 

These structural reforms include strengthening public financial management, mobilizing domestic resources, improving logistics, and deepening the financial sector, all of which are vital for private sector development, export diversification, and job creation in the medium term.

Ginting highlighted the opportunity presented by the sustained high oil prices, urging the acceleration of reforms to expand domestic renewable energy supply and align with the country’s climate change objectives.