Trade deficit narrows over 38% on falling imports

Bangladesh’s trade deficit narrowed by 38.35 per cent year-on-year to 13.82 billion in the first eight months of the current fiscal year, made possible by negative import growth against positive export growth.

The deficit fell by $8.60 billion during the July-February period of FY23, show latest data from the central bank.

The trade deficit was at $22.43 billion during the same period last fiscal year.

This figure fell due to negative import growth against positive export earnings, say industry insiders.

During July-February, FY23, import payments fell by 10.27 per cent to $48.79 billion, when compared year-on-year.

Meanwhile, the country’s export earnings grew 9.45 per cent to $34.96 billion in the first eight months of this fiscal year, shows central bank data.

The import growth slowed down following a number of measures aimed at curbing imports amid the ongoing pressure on forex reserves.