Trade deficit rises 21.12% in July-April

Bangladesh’s trade deficit rose by 21.12% in the July-April period of the current fiscal year 2020-21, due to the higher import payment growth than export earnings.

The trade deficit rose to $17.23 billion in July-April of FY21 from $14.22 billion in the same period of FY20, as per Bangladesh Bank’s (BB) latest data.

Their data showed that the export earnings rose by 8.97% to $31.33 billion in July-April of FY21 compared to $28.75 billion in the same period of FY20.

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On the contrary, import payments increased by 12.99% to $48.56 billion in July-April of FY21 compared to $42.77 billion in the same period of FY20.

The country’s economy and businesses are going to pre-pandemic levels, which are reflecting on the growth of import payment in the July-April period, said stakeholders in business.

Major vaccination drives in developed countries have helped raise export earnings, they added.

Bangladesh’s gross foreign direct investments (FDI) increased by 7.85% to $2.95 billion in July-April of FY21 from $2.74 billion in the same period of FY20, as per BB data.

However, Bangladesh’s net FDI increased sharply by 32.13% to $1.47 billion in the first ten months of the current fiscal year from $1.11 billion in the same period of the previous fiscal year.

Foreign investors withdrew $220 million in portfolio investments from the stock market in July-April of FY21 — far more than the same period of the previous fiscal year, $31 million in investments.

However, the country’s current account deficit stood at $47 million in July-April of FY21 compared to a $3.77 billion deficit in the first ten months of FY20.