NN Business Desk :
Unnayan Onneshan (UO) reveals that increased trade deficit and resultant negative current account balance coupled with negative growth in inflow of remittance are likely to exert pressure on country’s balance of payment.
The independent multidisciplinary think-tank in its monthly publication of the ‘Bangladesh Economic Update’ December 2016 shows that trade deficit increased by 12.52 percent to $ 2777 million in July-October 2016 from $ 2468 million in July-October, 2015 since export increased by 6.78 percent whereas import increased by 7.93 percent during July-October 2016, reports UNB.
The other three components of current account balance – services, primary income and secondary income – also exhibit declining trends, notes the think tank.
The balance of services further declined from negative $ 865 million in July-October 2015 to negative $ 1036 million during the corresponding period of the current fiscal year.
Both of the balances of primary and secondary income accounts declined in July-October 2016 compared to the corresponding period of the previous fiscal year. The balance of primary income declined from negative $ 590 million to $ 651 million while that of secondary income declined from $ 5164 million to $ 4448 million.
As a result of deterioration in the balance of all four components of current account, the current account balance declined substantially in July-October 2016 compared to the corresponding period of the previous fiscal year.
The current account balance exhibited a surplus of $ 1241 million in July-October 2015, whereas it shows a deficit of $ 16 million in July-October 2016.
Declining trend is also observed in the inflow of workers’ remittance in the first four months of FY 2016-17 compared to the corresponding period of the previous fiscal year. Inflow of workers’ remittance declined by 15.43 percent to 4255.76 million USD in July-October 2016 from 5032.09 million USD in July-October 2015.
The overall balance shows a slight improvement in the first four months of the current fiscal year compared to the corresponding period of the previous fiscal year due mainly to improvement in the financial account.
Unnayan Onneshan (UO) reveals that increased trade deficit and resultant negative current account balance coupled with negative growth in inflow of remittance are likely to exert pressure on country’s balance of payment.
The independent multidisciplinary think-tank in its monthly publication of the ‘Bangladesh Economic Update’ December 2016 shows that trade deficit increased by 12.52 percent to $ 2777 million in July-October 2016 from $ 2468 million in July-October, 2015 since export increased by 6.78 percent whereas import increased by 7.93 percent during July-October 2016, reports UNB.
The other three components of current account balance – services, primary income and secondary income – also exhibit declining trends, notes the think tank.
The balance of services further declined from negative $ 865 million in July-October 2015 to negative $ 1036 million during the corresponding period of the current fiscal year.
Both of the balances of primary and secondary income accounts declined in July-October 2016 compared to the corresponding period of the previous fiscal year. The balance of primary income declined from negative $ 590 million to $ 651 million while that of secondary income declined from $ 5164 million to $ 4448 million.
As a result of deterioration in the balance of all four components of current account, the current account balance declined substantially in July-October 2016 compared to the corresponding period of the previous fiscal year.
The current account balance exhibited a surplus of $ 1241 million in July-October 2015, whereas it shows a deficit of $ 16 million in July-October 2016.
Declining trend is also observed in the inflow of workers’ remittance in the first four months of FY 2016-17 compared to the corresponding period of the previous fiscal year. Inflow of workers’ remittance declined by 15.43 percent to 4255.76 million USD in July-October 2016 from 5032.09 million USD in July-October 2015.
The overall balance shows a slight improvement in the first four months of the current fiscal year compared to the corresponding period of the previous fiscal year due mainly to improvement in the financial account.
