Written by The Banking Post
The Asian Development Bank (ADB) has cut Bangladesh’s economic growth forecast for FY2026-27 to 4.5%, warning that persistent energy supply shortages and weaknesses in the banking sector will continue to weigh on the country’s economic recovery.
In its Asian Development Outlook (ADO) July 2026, released on 8 July, the Manila-based lender revised down its growth projection from the 4.7% forecast it made in April.
ADB also estimated that Bangladesh’s economy grew by 3.7% in FY2025-26, down from its earlier projection of 4.0% and below the Bangladesh Bureau of Statistics’ provisional estimate of 4.14%.
“The lower growth reflects weak exports, subdued private investment, and supply-side constraints, even as resilient domestic demand provides some support,” the report said.
The lender also raised its inflation forecast for FY2026-27 to 8.8% from 8.5%, saying higher fuel and electricity prices are expected to create second-round inflationary pressures and keep consumer prices elevated.
Despite the weaker outlook, the government has set a GDP growth target of 6.5% for the current fiscal year.
