Inflation may come down in Bangladesh: ADB

  • Staff Correspondent, Barta24.com, Dhaka
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Photo: Collected

Photo: Collected

Declining exports, energy and power crisis and high inflation are slowing the economy. For that reason, the Asian Development Bank (ADB) believes that inflation in Bangladesh will decrease in the coming months. According to ADB, the economic growth of Bangladesh will be 6.20 percent at the end of this year.

These things were said in ADB's Asian Development Outlook-December 2023 report published on Tuesday (December 19).

বিজ্ঞাপন

Declining exports, energy and power crisis and high inflation are slowing the economy, the report said. As a result, the agency lowered its forecast for Bangladesh's gross domestic product (GDP) growth.

The ADB report has cut its growth forecast for the fiscal year ending June 30. However, the report did not mention exactly how much the growth forecast has been reduced.

বিজ্ঞাপন

An official from the ADB office in Dhaka said that 6.20 percent growth has been predicted for Bangladesh.

The organization said, despite various initiatives, the inflation rate in Bangladesh was very close to double digits due to the increase in food prices from last July to October. However, the continuation of contractionary monetary policy, initiatives to introduce market-based exchange rate, increase in food grain production and fall in commodity prices in the international market are expected to moderate the inflation rate in the coming months.

Earlier, the Asian Development Outlook published last April said that the inflation rate in Bangladesh may be 6.6 percent in the current financial year. ADB maintained that prediction in the report published last September.

High inflation has been going on in the country for several consecutive months. Average inflation was over 9 percent from last June to November. In such a trend, the government has recently revised its target. In the budget of the current financial year, the target of inflation is 6 percent. According to the latest decision, the government wants to raise the inflation target to 7 percent in the current financial year.

According to ADB's report published on Tuesday, inflation in the South Asian region may be 8.6 percent this year. The agency had made the same prediction last September. The ADB report cited high inflation in Bangladesh and Nepal in the last few months as the reason for keeping the forecast for the region unchanged.

In the report, the forecast of inflation in the Asia region in 2024 is slightly higher than the previous one, at 3.6 percent. The reason for this has been higher than expected inflation in Bangladesh, Kazakhstan, Myanmar and Korea.

Recently, the government has also revised the GDP growth target for the current financial year. Considering the overall economic situation of the country, the growth target has been reduced to 6.5 percent. This target in the budget was 7.5 percent.

Earlier, the ADB report published last April predicted a GDP growth of 6.5 percent for the current fiscal year. ADB maintained this forecast in September as well.