Bangladesh's economic growth was hampered by external trade imbalances and rising inflation, said the Asian Development Bank, while lowering the country's forecasted rate.
In its Asian Development Outlook Supplement (ADOS) released Wednesday, the ADB also cut the growth projections for other South Asian neighbours and the developing Asia, too.
The ADB's flagship report ADO Update in September had projected Bangladesh's gross domestic product (GDP) growth down at 6.6% from the previous outlook of 7.2% for FY23.
And now the development financier cut the GDP forecast further, without quantifying.
In Bangladesh, recovery is hampered by external imbalances and unexpectedly high inflation, the ADOS read.
The ADOS also read: "In Bangladesh, the GDP growth projection for FY23 is adjusted down on account of dampened export and a widening trade deficit, continued high inflation and shortages of electric power and other energy, subdued remittances, and austerity measures adopted by the government to narrow a large financing gap."
It says the economic growth could be fallen into further risk on the downside from the declining global growth, particularly in Europe and the US.
In South Asia forecast the ADOS says the economic growth in the South Asian nations will grow at the same 6.5% for 2022.
However, it has been revised down marginally for the next year 2023 from 6.5% to 6.3% following an economic slowdown in Bangladesh and flooding in Pakistan.
The ADB outlook has also revised down the Asian growth from 4.3% to 4.2% in 2022 and from 4.9% to 4.6% in 2023.
"Three main headwinds -- recurrent lockdowns in China, the Russian invasion of Ukraine, and slowing global growth -- continue to hamper recovery in developing Asia," it said to substantiate the bank's downward revision of economic forecasts.
The sub-regional revision for 2023 largely reflects higher inflation forecasts for Bangladesh, Nepal, Pakistan, and Sri Lanka.
"The FY23 forecast for inflation in Bangladesh is sharply raised to account for several factors: a worsening outlook for agriculture following losses from flashfloods and Cyclone Sitrang; the effects of currency depreciation on prices for imported products; rising global prices of food, fuel, fertilizer, and other commodities; administered oil and natural gas price hikes; and expected increases in retail electricity prices."
Meanwhile, the ADB outlook on growth for the South Asian big neighbour India remains unchanged in the ADOS as it says the country will grow at 7.2%.
