ADB warns of slower GDP growth in Bangladesh due to US tariffs
In the July edition of its Asian Development Outlook, the ADB announced a downward revision of Bangladesh's growth forecast.
The Asian Development Bank (ADB) has cautioned that Bangladesh’s GDP growth could slow in the current fiscal year (2025–26), citing weak export performance and subdued industrial activity, further aggravated by retaliatory tariffs imposed by the United States.
In the July edition of its Asian Development Outlook, the ADB said it had revised its growth forecast for Bangladesh downward, though it did not provide a specific figure.
The latest edition, released recently, does not include country-specific projections but instead focuses on regional trends and economic assessments across major economies.
In its previous outlook published in April, the ADB had projected Bangladesh’s GDP growth for FY2025–26 at 5.1%.
The revision follows Washington’s announcement in April of a 37% retaliatory tariff on Bangladeshi exports—later adjusted to 35%—set to take effect on August 1. The Bangladeshi government is currently negotiating with US officials to resolve the issue. If enforced, the tariff would raise the cost of key exports, particularly ready-made garments, potentially dampening shipment volumes and slowing economic momentum.
On inflation, the ADB noted a modest decline in the outgoing fiscal year, attributing the easing to stable global commodity prices and tighter fiscal and monetary policies. The inflation outlook for FY2026 remains unchanged for the same reasons.
In its April projection, the ADB had estimated average inflation in Bangladesh would fall to 8% in FY2025–26.
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