Dhaka, Bangladesh (BBN)– Bangladesh’s overall trade deficit declined by nearly 32 per cent to US$342 million in July last, the first month of the current fiscal, due to higher export earnings than import payments.
The overall trade deficit came down to $342 million in the first month of fiscal 2008-09 from $502 million during the corresponding period of the previous fiscal, according to the central bank statistics.
In July last, the country’s export earning was worth $ 1.531 billion, up by nearly 72 per cent over that of the corresponding period of the previous year.
On the other hand, import payment rose to $1.873 billion in July from $1.393 billion of the corresponding period of the previous fiscal.
“The existing trend in overall trade deficit may continue in the near future due to lower import of food grains as well as the falling tendency of prices of commodities in the global market,” a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN in Dhaka.
The official also said higher inflow of remittances and foreign aids have contributed to maintaining the country’s overall balance of payments surplus during the period.
“Despite deficit in the trade balance, current account balance recorded a surplus of $269 million in July, 2008 against the deficit of $130 million in July 2007 due mainly to larger current transfers of $879 million,” the central bank said in its Major Economic Indicators: Monthly Update for October, 2008.
The overall balance of payments, however, recorded a surplus of $178 million at the end of July last as against the surplus of $161 million during the corresponding period of the previous fiscal due to surplus in current account of $269 million, the Update said.
The flow of net foreign direct investment (FDI) stood at $63 million in the period under review against $48 million in the same period of the previous fiscal. The portfolio investment was recorded deficit of $1.0 million in the month against $33 million of the same period of the previous fiscal.
However, the net receipts of foreign aid rose to $228.98 million during the July- August period of the current fiscal from $28.30 million of the same period of the previous fiscal, the BB’s data showed.
BBN/SI/SSR/AD-09November08-12:50 PM (BST)