US retaliatory tariffs could reduce Bangladesh's GDP growth: ADB
The growth forecast for fiscal 2025-26 (FY26) has been revised downward, primarily due to a slowdown in the export and industrial sectors, as well as the potential effects of the US tariffs, the bank said without specifying a projected growth rate.
The ADB recently cautioned that Bangladesh's GDP growth could be hit by the proposed 35-per cent US retaliatory tariff. The growth forecast for FY26 has been revised downward, primarily due to a slowdown in the export and industrial sectors, as well as the potential effects of the US tariffs, the bank said without specifying a projected growth rate. It noted a slight decline in inflation in FY25.
On inflation, the July edition of ADB's Asian Development Outlook noted a slight decline in the outgoing fiscal, attributing it to stable global commodity prices and tighter fiscal and monetary policies. For these reasons, the inflation outlook for FY26 has been kept unchanged.
In its previous outlook published in April, ADB had projected Bangladesh's GDP growth for FY26 at 5.1 per cent and average inflation to ease to 8 per cent in FY26.
Fibre2Fashion News Desk (DS)
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