Dhaka, Bangladesh (BBN)– Bangladesh’s trade deficit widened slightly in the first five months of this fiscal year (FY), as the rate of export growth fell more than the import one that indicates a sluggish trend of the economy.
The overall trade gap widened by 0.42 per cent to $ 6.68 billion during the period under review from $ 6.65 billion in the same period of FY ’19, according the central bank’s latest data.
The country’s export growth fell by 7.51 per cent to $ 15.52 billion in July-November from $ 16.78 billion in the same period of the previous fiscal.
Import growth also dropped by 5.20 to $ 22.20 billion from $ 23.43 billion.
“It is a very bad signal for our economy as all types of import including industrial capital machinery are declining,” a senior economist explained.
He also said the overall import, particularly those of capital machineries and raw materials are the fundamental basis for local industrialization, which subsequently transforms into enhanced export earnings for the economy.
On the other hand, pressure on the country’s current account balance eased slightly following higher inflow of remittance during the period under review.
The country’s remittance inflow grew by 22.51 per cent to $7.92 billion in the first five months of FY 20 from $6.46 billion in the same period of FY 19.
The current account deficit stood at US$ 1.10 billion during the July-November period of the FY 2019-20 from $2.42 billion in the same period of the previous fiscal.
The account deficit was $1.32 billion a month ago (July-October). It was $ 2.07 billion in the first four months of FY 19.
Actually, the pressure on current account balance has started since September 2019 after two months interval.
Meanwhile, the country’s overall balance of payments (BoP) deficit came down to $307 million in the first five months of this fiscal from $ 837 million in the same period of FY 19. It was $ 204 million in the first quarter (Q1) of this fiscal.