In contrast to the 6.0% forecasted growth, Bangladesh's GDP is expected to increase by 6.5% in FY2024
According to the most recent Asian Development Bank (ADB) study published today, Bangladesh's gross domestic product (GDP) is predicted to expand by 6.5% in FY2024 as opposed to the 6.0% growth in the prior fiscal year.
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The forecast for somewhat faster growth is due to an improvement in domestic demand and improved export growth as a result of the euro area's economic recovery, claims the ,Asian Development Outlook (ADO) September 2023 study.
From 9.0% in FY2023, inflation is predicted to decrease to 6.6% in the current fiscal. As remittance growth improves, it is anticipated that the current account deficit would modestly decrease, from 0.7% of GDP in the previous fiscal year to 0.5% in FY2024.
The paper states that if global demand is less than anticipated, the primary risk to this growth prediction is a further decline in export growth.
According to ADB Country Director Edimon Ginting, the government is handling the external economic concerns comparatively effectively while pushing infrastructure development and crucial reforms to enhance the investment climate.
In the medium term, Ginting said, these crucial structural reforms are essential for the growth of the private sector, export diversification, and the creation of high-paying jobs. They include strengthening public financial management, improving domestic resource mobilisation, boosting logistics, and improving the financial sector.
A solid reason to speed up measures to increase domestic renewable energy supply and meet the nation's climate change goals is the continuation of high oil prices.
According to the report, rising private consumption would be aided by moderate inflation and a surge in remittances, while investment will rise as more significant government infrastructure projects are completed. However, the first rise in interest rates following the country's monetary policy framework improvement can deter private investment.
With a small decline in the price of non-fuel commodities globally, increased agricultural production, including an early tightening of monetary policy under the new framework, inflation is anticipated to ease.
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