Bangladesh’s current account balance saw a surplus of around $3.3 billion while the trade deficit narrowed due to a fall in import cost amid the coronavirus pandemic.
According to the latest balance of payments [BOP] data, in the first two months of the current FY 21 (July-August), the current account posted a surplus of $3.3 billion, up from $204 million during the same period a year ago.However, FY 20 ended with a huge deficit of $4.85 billion.
In July and August, the country’s trade deficit stood at $698 million, which is one-third of the same period last year.
Bangladesh Bank (BB) data show that the trade deficit was around $2 billion during the same time last year. FY20 ended with a trade deficit of about $18 billion.
During the July-August period, Bangladesh earned over $6.73 billion from exports against the import spending of $7.43 billion. Compared to last year, export income increased by 2.4 per cent against a 14 per cent fall in import cost during the period in review.
The trade deficit in the services sector has also narrowed. The trade deficit in the services sector is measured by calculating the income and expenditure of the insurance, travel sector.
During the period July-August of 2019, the deficit in this sector was $509 million, which came down to $197 million during the same time this year.Bangladesh fetched foreign direct investment (FDI) of $360 million during the period, down from $478 million from the same period a year ago.
The expatriates have sent remittances of over $4.56 billion in the first two months of the current fiscal, up from $3.04 billion during the same period last year.