Bangladesh’s trade deficit is expected to be $33 billion in the current fiscal year as export earnings and remittances continue to fall below overall import costs, according to Bangladesh Bank’s monetary policy for the coming fiscal year.
The trade deficit is expected to rise to $36.70 billion in the next fiscal year, which begins tomorrow.
The new projection is higher than the BB’s original MPS projection for 2021-22. The trade deficit for the current fiscal year, which ends today, was projected by the central bank to be $26.60 billion.
However, the deficit grew to $27.56 billion in the first ten months of FY22.
The BB also predicted that the current account deficit would rise to $17.73 billion in the current fiscal year, up from $4.5 billion the previous year.
In a press conference, Bangladesh Bank Governor Fazle Kabir stated that the current account deficit has increased because the growth of export earnings has lagged behind the growth of imports, while remittances fell 16% year on year in the July-May period.
The central bank, on the other hand, anticipates a marginal reduction in the current account deficit to $16.54 billion in FY23.