Bangladesh’s balance of payment (BoP) surplus has declined, which a leading economist says is due to increase in imports.
The surplus totalled $1.54 billion in the 11 months of the 2013-14 fiscal, according to the latest figures released by the Bangladesh Bank.
It was at $2.346 billion during the same period of the previous 2012-13 fiscal, which means it decreased by 35 percent in last fiscal.
BoP surplus was $ 2.525 billion in the 12 months of 2012-13FY, which was in the negative region in the previous 2011-12 FY by $447 million.
The central bank’s data show the 2013-14 fiscal started with huge BoP surplus, which continued until Feb 2013.
Imports of capital machinery, raw materials and other commodities rose after the Jan 5 polls, which caused the BoP surplus to decline.
BoP was at $2.02 billion during the Jul-Feb period of FY 13-14, which slumped to $1.54 billion by the end of May this year.
“The political stability after the national polls gave a respite to entrepreneurs. That’s why imports rose and the balance of payment declined,” said Zaid Bakht, the research director at the Bangladesh Institute of Development Studies.
He, however, said a $1.5 billion BoP surplus was ‘not bad’ for Bangladesh.
Trade deficit at $6.18 bn
Bangladesh Bank data shows that the country’s import in the first 11 months of FY 13-14 was at $33.18 billion, which is over 10 percent higher than the same period of the previous fiscal.
Meanwhile, Bangladesh’s export earnings in the same period was at $27 billion, which means the trade deficit stands at $6.18 billion.
In the 11 months of FY 11-12, the trade deficit was $6.3 billion, while it was $7.01 billion during the entire fiscal.
Bangladesh saw the biggest ever trade deficit of $9.32 bn in FY 11-12.
Source: bdnews24
