DHAKA, Jan. 11 (Xinhua) -- The World Bank has lowered its 2022-23 fiscal year (July 2022-June 2023) economic growth outlook for Bangladesh due to rising inflation and its negative impact on household incomes and firms' input costs, as well as energy shortages, import restrictions, and monetary policy tightening.
The global lender in its latest edition of Global Economic Prospects released on Tuesday has forecast a 5.2 percent growth for Bangladesh's gross domestic product (GDP) in the current fiscal year -- down from the 6.5 percent forecasted earlier in June last year.
The country registered a 7.2 percent GDP growth in 2022.
The report said Bangladesh's economy is expected to pick up again and return towards its potential pace in the 2023-24 fiscal year (July 2023-June 2024).
According to the Washington-based lender, the Bangladeshi government responded to high global energy prices with blackouts and factory closures to reduce energy consumption. It stopped purchasing vehicles, and made it harder to purchase luxury goods to preserve the country's international reserves.
The bank further said that rising energy costs and supply constraints saw Bangladesh's industrial production contract in September from its peak in March.
"Bangladesh was hard hit by spillovers from the changing global environment," said the bank. ■
