ADB cuts Bangladesh growth forecast to 4.5%, warns of persistent inflation risks

The Asian Development Bank's revised outlook underscores deepening macroeconomic headwinds, diverging sharply from domestic projections and signaling continued pressure on the currency and borrowing costs.

By Handelsavisen Newsroom · Automated 2026-07-09 05:27 UTC · 1 min read

The Asian Development Bank (ADB) has lowered its economic growth forecast for Bangladesh to 4.5% for the current fiscal year, citing persistent structural challenges and elevated inflation risks.

The revised projection, released in the latest Asian Development Outlook, marks a significant downward revision that highlights the widening gap between international lender assessments and domestic economic targets.

The central bank’s own internal models have previously signaled consumer price inflation nearing 9% through mid-2027, significantly overshooting its official ceiling of 7.

The ADB’s forecast stands in stark contrast to the 6.1% growth projection issued by Bangladesh Bank earlier this year, which itself fell short of the government’s official target of 6.5%.

This divergence underscores the severity of the economic slowdown and raises questions about the sustainability of current policy measures.

The central bank’s own internal models have previously signaled consumer price inflation nearing 9% through mid-2027, significantly overshooting its official ceiling of 7.5% for the upcoming fiscal year.

Elevated inflation remains a critical concern for investors and policymakers alike.