Imports must be spent more than the amount coming in from exports. As a result, a large trade deficit arose at the beginning of the current financial year. At the same time, Bangladesh has a deficit in its current account and total transactions.
This information has emerged in the latest report from Bangladesh Bank.
According to data from Bangladesh Bank, exports rose 14 percent in July, the first month of the current fiscal year. By contrast, imports rose by 23.23 percent. In July, 586 crore worth of goods were imported. In contrast, 388 million dollars worth of products were exported. As a result, Bangladesh has a trade deficit of $198 million. From the current exchange rate in local currency (95 taka per dollar), the amount is 18 thousand 819 crore taka. That is $628 million more than in the same period last fiscal year.
People related to the sector say that imports are more than exports. Bangladesh is facing a trade deficit with the outside world due to rising prices of all types of products, including energy in the global market, and a lack of money transfers as expected.
Before that, the country’s trade deficit in fiscal year 2021-22 (July-June) was $3,325 million, which is more than $3.14,000 million in Bangladeshi taka; That’s the highest in history. At the same time, the current account deficit from foreign transactions also exceeded $18.5 billion. Before that, the trade deficit figure for fiscal year 2020-21 was $2 thousand and $377 million.
The trade deficit of the services sector also widened in July. During this time, Bangladesh earned $73 million in the service sector. On the other hand, the country has spent 101 million dollars in the service sector. Service sector deficit is $28 million. In the same period last fiscal year, the deficit was $7.5 million.
The country has a deficit in its current account balance (current account balance). In the current financial year, this (negative) deficit figure in July amounted to 32 million USD 10 million. The surplus was $29.3 million in the prior year period.
With a current account surplus, the country does not have to go into debt in regular transactions. And if there is a deficit, the government has to fill it with loans. As such, it is better for developing countries to have a current account surplus. But the current account balance in the country has now turned negative.
The deficit in the total transaction (total balance) was $1.8 billion. This index was in surplus of $3.2 billion at the same time last year.
According to the report, expatriates sent $209 million in remittances in July. The previous year sent 187 million dollars. The growth was 12 percent. This index was the best of the economic indicators.
However, foreign direct investment (FDI) in the country has increased. Bangladesh received $300 million in foreign direct investment in the fiscal year 2021-2022 in July. In the same period of the current fiscal year, it rose to $390 million.
Net FDI is what remains of the total foreign direct investment in various sectors of Bangladesh after the profits of the investing company are taken away. Net foreign investment also increased 45.60 percent year-on-year to $180 million in the period under review. In the same period last year, net foreign investment was $12.5 million.