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Dhaka Tribune

ADB cuts growth forecast for Bangladesh and others

Update : 17 Jul 2013, 05:47 AM

The Asian Development Bank (ADB) has revised down the growth forecast of 45 developing countries, including Bangladesh.

The lower outlook was attributed to the drop in trade coupled with “subdued activities” across much of developing Asia and inflation, which is waning on the back of declining energy and food prices, given slower global demand for fuels and bumper grain harvests, says the latest Asian Development Outlook Supplement released on Tuesday in Manila, Philippines.

Putting Bangladesh in the same group as Afghanistan, Nepal and Pakistan, it expects slower growth as these countries are facing political transition, which is hampering economic policymaking.

The report however does not include any specific figure for the economic growth in Bangladesh for 2013 and 2014.

For the South Asia region, ADB trimmed its forecast to 5.6% this year as India, its largest economy, stuttered. The bank lowered its growth forecast for India this year to 5.8%, from 6%. The country’s economy grew 5% last year.

The ADB predicts a growth of 5.6% for South Asia region in 2013 against the earlier projection of 5.7%, which would pick up to 6.02% in 2014.

On a positive note, the ADB said slower GDP growth helped the region contain inflation, while expanded global natural gas production put a lid on energy prices.

China’s slowing economic growth is weakening momentum throughout the rest of Asia, the Asian Development Bank said on Tuesday as it revised down its forecasts for the region.

“Continued tepid demands from the major industrial economies coupled with slower growth in China are weighing on the outlook for developing Asia,” the lender said.

The ADB trimmed the growth forecast of its developing member countries to 6.3% for 2013 and 6.4% for 2014, which were earlier predicted 6.6% and 6.7% respectively.

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