Growth in Bangladesh estimated higher than forecast for FY23: ADB

The Asian Development Bank (ADB) in a growth forecast report has noted an upward revision for Bangladesh, as net exports performed better than expected.

"The higher estimate of 6.0 per cent for FY2023 (ended 30 June 2023) reflects strong net exports as imports fell more sharply than expected and export growth slowed less than expected," reads the ADB's Asian Development Outlook (ADO) July 2023, published Wednesday.

Titled "Robust Growth with Moderating Inflation," the report adds, "On the supply side, manufacturing firms of all sizes leveraged supportive government policies to contribute to growth. Crop losses to floods, cyclones, and droughts were partly offset by subsidies, incentives, and other measures.

"The service sector was buoyed by higher warehouse and support activities and health and social services. On the demand side, growth in public consumption outpaced expectations, as did public investment."

The ADO April 2023 forecast for growth in FY2024 is unchanged at 6.5 per cent.

The Indian economy, supported by upbeat domestic demand, is set to meet earlier projections. However, GDP projections for Nepal and Pakistan are adjusted down for FY2023 and maintained for FY2024.

Meanwhile, cash-strapped Sri Lanka’s GDP growth projections for 2023 and 2024 are maintained at 3.0 per cent contraction followed by 1.3 per cent growth.

Asian Development Outlook is the main economic forecasting product from ADB. It is published each April with an update published in September and brief reports published in July and December.

/KN/MHK/