Trade deficit reducing gradually
Dhaka, October 28: In the first quarter of the current financial year (July-September) the trade deficit stood at 2.039 billion dollars. The deficit is 1.80 billion dollars less than the same period last year. At the same time last year, the deficit was 3.84 billion dollars. The data was found in the Central Bank's Balance of Payments report on Tuesday (October 27) for the current July-September period of FY 2020-21.
According to the Balance of Payments data, in July-September of the fiscal year 2020-21, Bangladesh earned 9.697 billion dollars in the export sector, including the Export Processing Zone (EPZ). On the other hand, it has spent 11.736 billion dollars on imports. As a result, the trade deficit in the first quarter of the fiscal year stood at 2.039 billion dollars.
By exporting goods in these three months, Bangladesh's income has increased by 2.37 percent as compared to the previous year. On the other hand, the cost of importing goods has decreased by 11.47 percent over the previous year.
Imports were also low due to low domestic investment demand. So the import cost has not increased much.
However, the trade deficit has narrowed due to strong remittance inflows to the country. Remittances increased by about 50 percent in the first quarter.
The trade deficit in the services sector has also narrowed. During July-September of the last financial year, the deficit in this sector was 876 million dollars. This year it has come down to 585 million dollars.
According to the report of Bangladesh Bank, foreign direct investment (FDI) of 540 million dollars came to Bangladesh in the first quarter of the current financial year. At the same time last year, 717 million dollars came. As a result, FDI has decreased by 24.69 percent in three months.
Net FDI is what is left after the investor takes the profit money from the total foreign direct investment in different sectors of Bangladesh.
During the period under review, net foreign investment fell by 60 per cent to 68 million dollars.
Last year, net foreign investment was 170 million dollars. This time, the expatriates have sent remittances of 6.713 billion dollars. At the same time last year, they sent remittances worth 4.519 billion dollars.