The Asian Development Bank (ADB) forecasts Bangladesh's economic growth to moderate to 6.1% in fiscal year (FY) 2025, which begins in July 2024, according to its latest Asian Development Outlook report released in April 2024. This represents a slowdown from the estimated growth of 6.7% in FY2024.
The ADB attributes the expected deceleration to persistent inflationary pressures, tight monetary conditions, and a slowdown in global demand affecting exports. The report notes that inflation, while easing, remains high and continues to constrain private consumption.
Despite the slowdown, the ADB states that growth will be supported by public investment in large infrastructure projects and a recovery in private investment as inflationary pressures subside. The forecast is contingent on continued progress in macroeconomic reforms and a stable global economic environment.
The ADB's projection is a key benchmark for the country's economic planning. The government of Bangladesh has set a higher growth target of 7.5% for FY2025, indicating a more optimistic domestic outlook compared to the multilateral lender's assessment.
