Dhaka, Bangladesh (BBN)– Bangladesh’s balance of payments (BoP) witnessed a downward trend due mainly to widening trade gap, negative growth of inward remittance and lower inflow of foreign direct investment (FDI).
The BoP came down to US$3.88 billion in the first nine months of the current fiscal year (FY) 2013-14 from $3.95 billion in the corresponding period of the previous fiscal year, according to the central bank statistics.
“It may come under pressure in the near future if the existing downward trend continues,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
Meanwhile, the country’s overall trade deficit widened during the period under review because of higher import payments and relatively lower export growth.
The trade deficit rose to $4.94 billion in the July-March period of the FY `14 from $4.86 billion in the corresponding period of the previous fiscal, the BB data showed.
On the other hand, the surplus of current account balance decreased by 41.79 percent to $1.52 billion in the first nine months of the FY `14 from $2.61 billion in the same period of the previous fiscal.
“The surplus of current account balance has been squeezed during the period under review due mainly to the negative growth of inward remittance,” the BB official explained.
Bangladesh received a total of $10.42 billion during the July-March period of the FY `14, sustaining a negative growth of 4.92 per cent over the corresponding period of the previous fiscal.
Besides, the balance of financial account also dropped by 36.99 percent to $1.43 billion in the period under review from $2.26 billion in the same period of the FY `13 due mainly to lower inflow of FDI and increased amount of net trade credit deficit.
The inflow of FDI came down to $1.15 billion in the first nine months of the FY `14 from $1.26 billion in the same period of the previous fiscal while the trade credit deficit rose to $990 million from $197 million.
Political uncertainty along with inadequate supply of gas and power has led to decrease in the inflow of FDI during the period under review over that of the same period in FY `13, according to bankers.
BBN/SSR/AD-23May14-1:02 pm (BST)
