Wednesday, 30 November, 2022

Trade deficit widens to $4.56bn in July-Aug

  • Staff Correspondent
  • 4 October, 2022 12:00 AM
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Trade deficit widens to $4.56bn in July-Aug

The country’s external trade deficit widened to nearly $4.56 billion in the first two months of the current fiscal year as high imports outpaced the export growth.

This deficit was 6.30 percent than $4.28 billion trade deficit registered in the corresponding period of FY22. 

Besides, the deficit in current account also crossed $1.5 billion during the months of July and August, up from $1.41 billion one year ago, latest central bank data showed.

Bangladesh’s exports grew by nearly 24 percent year-on-year to $8.13 billion in July and August, while imports jumped to $12.69 billion with nearly 17 percent yearly growth.

Trade deficit in service sector also widened as Bangladesh earned $1.51 billion from trade in services while it spent $2.19 billion on services it taken from overseas.

Overall balance of payment deficit was $2.36 billion in two months against $2.21 billion surplus during the first two months of last fiscal year.

Meanwhile, the country received $780 million foreign direct investment in the period compared to $600 million a year earlier.

The flow of inward remittance rose 12.25 percent to $4.13 billion in first two months of FY23, according to the central bank report.  

In 2021-22 fiscal year, Bangladesh witnessed the highest ever trade deficit of $33.25 billion with over $18 billion deficit in current account balance.