Country’s trade deficit dropped by 10.44 per cent or $1.59 billion in first 10 months of the fiscal year 2018-2019 compared with that in the same period of the last fiscal year due mainly to slowdown in import growth and notable growth in export earnings.
Trade deficit eased to $13.68 billion in July-April of FY19 from $15.27 billion in the same period of FY18, showed Bangladesh Bank data released on Wednesday.
Though the trade deficit eased in the period, the deficit was still high, said BB officials.
Trade deficit was $11.93 billion in July-March of the current FY19.
According to the central bank, trade deficit eased in July-April as import grew by only 3.88 per cent against the export earning growth of 11.15 per cent in the period.
Import payments stood at $47.11 billion in July-April of FY19 from $45.35 billion in the same period of FY18.
BB officials said that reduction in food import pressure was the main reason for the slowdown in import growth while US-China trade war helped Bangladesh accelerate RMG export to the US market.
According to the BB data, export earnings stood at $33.43 billion in July-April of FY19 against $30.08 billion in the same period of FY18.
A fall in capital machinery import, however, has created a concern among experts and economists as capital machinery is considered the driving force for the industrial sector of countries like Bangladesh.
Deficit in the overall balance of payment, however, stood at $590 million in July-April of FY19 against $1.04 billion in the same period of FY18.
The situation of current account balance also improved slightly as the deficit dropped to $5.07 billion from $7.79 billion in the same period of last fiscal year due to a rise in remittance inflows.
The BB data showed that inflow of remittance increased by 10.75 per cent to $15.06 billion in July-May of FY19 compared with that of $13.06 billion in the same period of FY18.
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