ADB cuts Bangladesh FY27 growth forecast to 4.5% over energy, banking sector concerns
In its Asian Development Outlook (ADO) July 2026, released yesterday (8 July), the Manila-based lender revised down its FY27 growth projection from 4.7% forecast in April, citing ongoing energy constraints and weaknesses in the financial sector.
Highlights
- ADB cuts Bangladesh's FY27 growth forecast to 4.5%
- Energy shortages and banking weaknesses hinder economic recovery
- FY26 growth estimated at 3.7%, below previous forecast
- Weak exports and investment continue weighing on growth
- FY27 inflation forecast raised to 8.8%
- Government targets 6.5% GDP growth despite weaker outlook
The Asian Development Bank (ADB) has lowered Bangladesh's economic growth forecast for FY27 to 4.5%, warning that persistent energy supply shortages and vulnerabilities in the banking sector will continue to hamper the country's recovery.
In its Asian Development Outlook (ADO) July 2026, released yesterday (8 July), the Manila-based lender revised down its FY27 growth projection from 4.7% forecast in April, citing ongoing energy constraints and weaknesses in the financial sector.
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The ADB also estimated that Bangladesh's economy expanded by 3.7% in FY26, below its earlier projection of 4.0% and lower than 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 further raised its FY27 inflation forecast to 8.8% from 8.5%, noting that higher fuel and electricity costs are likely to generate second-round inflationary pressures and keep prices elevated.
Despite the subdued outlook, the government has set a GDP growth target of 6.5% for the current fiscal year.
