Trade gap widens in July-Sept
Sunday, 12 December 2010
Nazmul Ahsan
Trade deficit ballooned to 28 per cent to about US$2.0 billion in the first quarter (Q1) of the current 2011 fiscal from a year earlier, thanks to massive surge in import of food items and consumer goods.
The jump came from a $6.91 billion increase in import, which was up by 43.92 per cent or $1.07 billion over the same period of the previous fiscal year, according to the report.
By contrast, the export earning during the Q1 was $5.02 billion, up by 31.07 per cent or $ 1.52 billion over the same period of the previous fiscal year.
The Office of Chief Controller of Imports and Exports under the Ministry of Commerce (MoC) has prepared the report based on the country's export earning and import cost.
"The deficit rose to about $2.0 billion in the first quarter, due mainly to higher import of food items, consumer goods and raw materials," a senior Bangladesh Bank (BB) official told the FE.
"The scenario is mixed for the economy as high import of raw materials and capital machinery fingers to further industrialisation, while surge in import of consumer goods acts as threat to local industrialisation," he added.
According to the data of BB, import of food items posted a hefty growth of 231.61 per cent, consumer goods 95 per cent, industrial raw materials 43.10 per cent and capital machinery 38.08 per cent during the first quarter over the same period of the previous fiscal year.
Officials in the Ministry of Finance (MoF) said the picture of export and import activities during July-September period is still not threatening as far as trade deficit is concerned.
They, however, said the situation in Balance of Payment might come under strain if trade deficit increases further.
Trade deficit ballooned to 28 per cent to about US$2.0 billion in the first quarter (Q1) of the current 2011 fiscal from a year earlier, thanks to massive surge in import of food items and consumer goods.
The jump came from a $6.91 billion increase in import, which was up by 43.92 per cent or $1.07 billion over the same period of the previous fiscal year, according to the report.
By contrast, the export earning during the Q1 was $5.02 billion, up by 31.07 per cent or $ 1.52 billion over the same period of the previous fiscal year.
The Office of Chief Controller of Imports and Exports under the Ministry of Commerce (MoC) has prepared the report based on the country's export earning and import cost.
"The deficit rose to about $2.0 billion in the first quarter, due mainly to higher import of food items, consumer goods and raw materials," a senior Bangladesh Bank (BB) official told the FE.
"The scenario is mixed for the economy as high import of raw materials and capital machinery fingers to further industrialisation, while surge in import of consumer goods acts as threat to local industrialisation," he added.
According to the data of BB, import of food items posted a hefty growth of 231.61 per cent, consumer goods 95 per cent, industrial raw materials 43.10 per cent and capital machinery 38.08 per cent during the first quarter over the same period of the previous fiscal year.
Officials in the Ministry of Finance (MoF) said the picture of export and import activities during July-September period is still not threatening as far as trade deficit is concerned.
They, however, said the situation in Balance of Payment might come under strain if trade deficit increases further.