The Asian Development Bank (ADB) has lowered Bangladesh's growth forecast for fiscal 2024-25 to 5.1 per cent from 6.6 per cent it had projected in April.
Manila based ADB also forecast that inflation may rise to 10 per cent, up from 7 per cent it had forecast earlier.
On Wednesday, ADB released the September edition of its Asian Development Outlook.
In April, ADB said inflation would fall to 7 per cent in the current fiscal.
In other words, this year also the common people will have spend more due to high inflation.
The political turmoil in July and August, along with the floods severely impacted Bangladesh's Gross Domestic Product (GDP), disrupting production of goods and services across the
country.
In its latest report, the ADB warned that fiscal and monetary policies are expected to remain tight, which could further reduce consumption and keep inflation high.
ADB cautioned that its forecast carries significant uncertainty, with downside risks overshadowing the macroeconomic outlook.
ADB identified these risks as primarily driven by ongoing political instability, a fragile law-and-order, and vulnerabilities within the country's financial sector.
ADB's revised forecast is lower than the World Bank's June projection, which estimated Bangladesh's economic growth at 5.7 per cent for 2024-25.
