A senior Bangladesh Bank official confirmed that the trade deficit increased due to a rise in import costs compared to export earnings
Bangladesh’s trade deficit rose by 5.53% to $3.85 billion in the first quarter of the current fiscal year, driven by a rise in imports.
The deficit in the same period of the previous fiscal year was $3.65 billion, according to data from Bangladesh Bank.
Abdus Salam Murshedy, a former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told the Dhaka Tribune that the rise in imports was fuelled by private sector investment.
“The Bangladesh economy is doing better in recent years,” Salam, who is also the managing director of Envoy Textile Limited, said.
“In going for new investment, the entrepreneurs have imported huge capital machineries, which pushed the import cost up and widened the trade deficit.”
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