ADB cuts Bangladesh's growth forecast to 5.1% due to political unrest

The ADB has lowered its forecast for Bangladesh's economic growth to 5.1 per cent primarily due to supply disruptions caused by political unrest in July and August, a media report said on Wednesday.

The Asian Development Bank (ADB) had earlier projected that the overall production of goods and services in the South Asian country would grow by 6.6 per cent for the fiscal year (FY) 2024-25, The Daily Star newspaper reported.

The Manila-based multilateral lender said it lowered the country's GDP growth projection for the current fiscal due to violent protests and recent floods.

The ADB said the fiscal and monetary policies are expected to remain tight, further dampening consumption and investment demand.

The lender said the forecast is highly uncertain as significant downside risks cloud the macroeconomic outlook.

"These risks primarily stem from ongoing political instability, a fragile law-and-order situation, and vulnerabilities within the financial sector," it said.

The ADB's lat