The Asian Development Bank has revised down the economic growth for Bangladesh in 2023-24 fiscal year, but said inflation is expected to ease in the coming months.  

The growth forecast for South Asia is revised up to 5.7 percent in 2023 mainly on higher-than-expected growth in India for the July–September quarter, the regional lender said in its latest Asian Development Outlook on Tuesday.    

Growth forecasts for the subregion for 2024 are maintained at 6 percent, despite downward revisions in the forecasts for Bangladesh and Maldives. 

The 2024 growth projections for the subregion’s other economies are unchanged.

The forecast for Bangladesh’s growth for FY2024 is revised down because of moderate growth in exports and manufacturing amid an economic slowdown in major export markets, power and energy shortages, and continued high inflation, the Manila-based lending agency said. 

Upside risks to the forecast include receding uncertainties over next January’s elections, it added. 

The inflation forecast for 2024 in Developing Asia is revised up marginally to 3.6 percent on upside shocks that are keeping price pressures higher than previously expected in Bangladesh, Kazakhstan, Myanmar, and the Republic of Korea. 

The inflation forecast for South Asia is unchanged at 8.6 percent for 2023, but revised up to 6.7 percent for 2024.

This revision reflects higher inflation forecasts for Bangladesh and Nepal. 

Despite several efforts to reduce inflation, the monthly rate in Bangladesh was close to double digits in July–October due to rising food inflation. 

Inflation is expected to ease in the coming months on continued contractionary monetary policy, measures taken to secure a market-based exchange rate, lower global commodity prices, and a better crop outlook.