Political uncertainty has weakened Bangladesh’s gross domestic product (GDP) growth. It has also reduced domestic demand for goods and services. In addition, the effects of tight fiscal and monetary policies have weighed on the economy.

The Asian Development Bank (ADB) made these observations in its Annual Report 2025, published today, Thursday.

While referring to Nepal as an example, the report remarks that Bangladesh shares a similar political context.

On 10 April, in its Asian Development Outlook (April edition), the ADB projected that GDP growth may reach 4 per cent in the current fiscal year.

The organisation revised this forecast downward primarily due to the conflict in the Middle East.