Bangladesh has adjusted its economic growth forecast for the 2023-24 fiscal year, lowering it from the initial 7.5 percent to 6.5 percent, considering the prevailing challenges in the economy.
Concurrently, authorities have upwardly revised the inflation projection from 6 percent to 7.5 percent as consumer prices persistently stayed high, according to the monetary policy statement disclosed by the central bank today (17 January).
Despite the central bank's credit tightening efforts in the first half of the fiscal year, inflation has consistently exceeded 9 percent since March of the preceding year.
The Bangladesh Bank (BB) has affirmed that, notwithstanding the ongoing challenges, the economic outlook for the conclusion of FY24 remains optimistic.
"With the concerted efforts of Bangladesh Bank, the government, and other stakeholders, stability in the foreign exchange market and improvements in corporate governance and non-performing loans management are also anticipated," stated Bangladesh Bank.
The revision comes after the International Monetary Fund revised down its growth forecast for Bangladesh economy to 6 percent from 6.5 percent for 2023-24 fiscal year.
The World Bank also cut growth projection to 5.6 percent in the current fiscal year.