The trade deficit widened in BD

Exports are not increasing in line with imports into the country. As a result, the country’s trade deficit with the outside world has risen to a record amount. In the first eight months of the current fiscal year, the trade deficit was $2,230 billion. The amount in local currency is one lakh 91 thousand 780 crores.

This information was reported by Bangladesh Bank on Thursday (April 7) in its updated Current Account Balance of Foreign Transactions (Balance of Payments) report.

Bangladesh’s trade deficit is said to have been $2,235.5 million from July to February of the current fiscal year 2021-22, which was $1,235,900,000 in the same period of the previous fiscal year. The trade deficit for the entire period (July-December) of fiscal year 2020-21 was $2,377 million.

Bangladesh always has a trade deficit because exports of goods are smaller than imports. But after the corona situation normalized, imports increased enormously. And this has created a big gap between imports and exports. As a result, the country has a large trade deficit.

Bangladesh Bank says exports rose 30 percent from July to February of the current fiscal year. By contrast, imports rose by 47 percent. In the eight months discussed, the country earned three thousand and 207 million dollars in exports. Five thousand dollars 438 million has been spent on importing products. If export earnings are excluded from import expenditures, the trade deficit is $2230 billion.

The trade deficit of the services sector has also widened in these eight months. In the first eight months of the current fiscal year, Bangladesh earned $6.14 billion in the service sector. On the other hand, the country spent $864 million on the service sector. The deficit is therefore $250 million. The deficit was $1.73 billion in the corresponding period of the prior fiscal year.

Bangladesh has a large current account deficit. In the 8 months of the current fiscal year, this (negative) deficit amounted to $1,283.4 million. The surplus was $82.5 million versus the deficit in the prior year period. The total deficit is $2.22 billion.

The deficit on the total balance was $222.2 million (2.22 billion). In the same period of last fiscal year, this index had a surplus of $6.88 billion.

Analysis of the data shows that remittances worth $1,344 million arrived in the country from July to February. That was 19 percent less than in the same period of the previous financial year.

The amount of Foreign Direct Investment (FDI) in the country has increased. Bangladesh received $235 million in foreign direct investment in July-February of the past fiscal year. In the same period of the current fiscal year, it has increased to $253 million and $30 million.

In the first half of the fiscal year, net foreign investment in the month also increased 11.65 percent year-on-year to $116 million. Net foreign investment in the same period last year was $104 million.

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