The Asian Development Bank (ADB) has trimmed its growth forecast for Bangladesh in the current 2014-15 fiscal year, citing a number of challenges.
In its update to the outlook, ADB said Tuesday that Bangladesh’ s economic and social progress notwithstanding, the country still faces a number of medium-to longer-term challenges, reports Xinhua.
GDP or Gross Domestic Product growth in 2014-15 (July 2014-June 2015) is projected at 6.1 percent, lower than the 6.4 percent forecasted by the Asian Development Outlook 2014 Update, launched in September 2014.
However, growth is expected to rise to 6.4 percent in the next 2015-16 fiscal year (July 2015-June 2016), aided by higher remittance and export growth, as well as the continued economic recovery in the United States and the eurozone area. If the political situation stabilizes, consumer and investor confidence is likely to rise, thereby stimulating demand and strengthening growth momentum.
In addition, the Manila-based lender said infrastructure constraints are expected to ease with the completion of ongoing projects, particularly the power plants.
