Higher demand for clothing has helped augment both exports and imports of Bangladesh, according to the Asian Development Bank (ADB).
"In Bangladesh, exports and imports grew more than projected in the Update thanks to a surge in global demand for clothing," the ADB said in its latest 'Asian Development Outlook Supplement'.
It further said faster import growth widened the country's trade deficit, but growth will be supported by private investment with imports of capital machinery and raw materials for garments.
Revising its sub-regional inflation forecast for 2022 upward to 5.3 per cent from 5.1 per cent, the ADB said the forecast upgrade reflects a higher projection for some South Asian countries including Bangladesh.
"The 2022 forecast is raised for Bangladesh as well, as the expected implementation of fiscal and monetary stimulus adds to pressure from higher fuel prices," the ADB said without going into further details.
In its September update the Manila-based multilateral lender lowered the projected growth for 2022 from 7.2 per cent to 6.8 per cent.
