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The Asian Development Bank (ADB) has predicted that the current rate of inflation in Bangladesh will decrease by the end of the fiscal year. At the same time, the organization says, according to them, the rate of GDP growth in Bangladesh in the last financial year will also increase.
The agency made this prediction in ADB's 'Asian Development Outlook 2023' report published on Wednesday (September 20).
ADB's Country Director Edimon Jinting commented that the Bangladesh government is managing the situation relatively well in the midst of external economic uncertainty.
According to the report of ADB, the inflation rate in Bangladesh is coming down to 6.6 percent in the fiscal year 2023-2-24.
The ADB report cites three reasons for the fall in inflation. It has been shown that the price of non-fuel products in the international market has decreased slightly as the main reason.
In addition, ADB expects inflation to decline from 9 percent in FY2022-23 to 6.6 percent in FY2023-24 due to expected higher agricultural production in Bangladesh and tighter monetary policy under the new framework.
Due to the increase in the prices of various products due to the Russia-Ukraine war, Bangladesh is suffering from inflation. Last August, inflation in the country was 9.92 percent. And last July this rate was 9.69 percent.
According to a media report, ADB Country Director Edimon Jinting said the government is doing relatively well despite external financial uncertainties. Because, urgent reforms are being done to improve infrastructure development and investment environment.
"These reforms include strengthening public financial management, increasing internal resource mobilization, improving delivery."
In this regard, the development of the private sector, export diversification is very important, he said.
Dream realization event at Bangabandhu Shilpa Nagar Dream realization event at Bangabandhu Shilpa Nagar
According to the report of ADB, compared to the growth of 6 percent in the last fiscal year (2022-23), it may increase slightly to 6.5 percent in the current fiscal year (2023-24).
The GDP growth target has been set at 7.5 percent in the budget of the current financial year.
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