Bangladesh’s trade deficit widened by $773 million to $7.54 billion in the July-September period of fiscal 2022-23 (FY23) compared with $6.77 billion in the same period in FY22, creating further pressure on foreign reserves, media reported.
In FY23 first quarter, the current account deficit hit $3.61 billion from a deficit balance of $2.54 billion in the same period of FY22.
According to the media reports based on Bangladesh Bank data, the trade deficit was $2.99 billion in September and a rise in merchandise imports against a growth in exports widened the trade deficit.
In the first three months of FY23, the country’s import payments surged by 11.7% to $1.93 billion compared with that of $1.73 billion in the same months of the previous year.
Imports are surging amid rising commodity prices, global supply chain disruptions and the Russia-Ukraine war, Bangladesh media reported.
In July-September, the country’s export earnings grew by 11.89% to $11.8 billion compared with that of $10.54 billion in the same period of 2021 due to increased shipments of readymade garment products.
As a result of the sharp increase in import payments compared with export earnings, demand for the dollar in the interbank money market has increased significantly in recent times.
The country’s gross foreign direct investment increased by 27.78% to $1.15 billion between July and September from $907 million in the same period of the previous fiscal, the bank data showed.
The country’s net FDI increased by 21.87% to $457 million in the first three months of FY23 from $375 million in the same months of the previous fiscal.