The Asian Development Bank (ADB) lowered its economic growth forecast for Bangladesh to 5.5-6.0 percent for the year ending in June, from a previous forecast of 6.5 percent, as the global slowdown hits exports from Asia. "Before the onset of the global financial crisis, a 6.5 percent growth target for the fiscal year appeared attainable.
With the financial crisis in the advanced economies unfolding and recession appearing to last longer than earlier anticipated, a growth rate in the range of 5.5 percent to 6.0 percent seems more likely," the ADB said late on Monday in a report. Export-reliant Asian economies are being hit hard by collapsing demand in the West as recession-hit consumers and companies cut back on spending.
Bangladesh's exports slid 10.07 percent to $1.19 billion in December on lower shipments to markets such as the United States and Europe, official data showed. Garments are a key export earner for Bangladesh. Slumping economic growth in Asia and the Middle East has also reduced jobs for Bangladeshis overseas in the construction and services sector.
Bangladesh's manpower exports dropped by nearly 63 percent in February. Exports and remittances from its citizens working overseas are key sources of foreign exchange for the impoverished south Asian country. The country's industrial growth may be between 6.6 percent and 7.2 percent compared with 6.9 percent previously, the ADB said. Growth in the services sector would slow to 5.8-6.2 percent, down from earlier forecast of 6.7 percent, as exports and local consumer spending weaken.