The growth forecast reduction is largely due to political uncertainty ahead of the 2014 elections, which has led consumers and investors to adopt a cautious approach, dampening private consumption and industrial growth.

The overall fiscal deficit is expected to stay within 4.6% of GDP, but risks such as revenue shortfalls, political unrest, and strikes could undermine fiscal discipline and lead to higher borrowing and monetary instability.

The forecast for FY2013 is slightly lower than earlier estimates, but actual growth of 6.03% in 2013 surpassed previous predictions, indicating some resilience despite challenges.

The ADB emphasizes the need for Bangladesh to improve infrastructure, business climate, trade logistics, and skills development to sustain higher growth, as urban congestion and infrastructure gaps pose significant challenges.

The US suspension of the Generalized System of Preferences (GSP) is expected to negatively impact Bangladesh's exports, especially in sectors outside garments, compounded by labor unrest and exchange rate issues.

The Asian Development Bank (ADB) has revised Bangladesh's GDP growth forecast for fiscal year 2013-14 to 5.8%, down from the government’s projection of 7.2%, citing weaker exports, investments, and domestic demand influenced by political uncertainty.

Inflation is projected at 7.5%, driven by rising fuel and electricity prices, higher wages in the garment sector, and supply disruptions from strikes, while export growth is expected to slow to 7%, and remittance growth to 8%, reflecting cautious economic activity.

Despite higher remittances, household demand and industrial activity are expected to weaken, with industrial growth slowing to 8.2% from 9.0% due to slack demand, while agriculture is forecasted to grow faster at 3.3%, supported by good weather.