Bangladesh’s Trade Deficit Narrows Marginally


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June 7, 2010 3:22 p.m. EST

Topics: food, macro economics, trade balance, economy, business and finance, consumer goods, World
Siddique Islam - AHN News Correspondent

Dhaka, Bangladesh (AHN) - Bangladesh’s overall trade deficit narrowed by more than 3 percent to $3.929 billion in the first nine months of this fiscal year thanks to lower food grain imports, officials told AHN Media Monday.

The country’s overall trade deficit fell to $3.929 billion between July 2009 and March of this year from $4.062 billion during the same period the previous year, according to central bank statistics.

“Lower food grain imports as well as lower prices of essential items in the international market have contributed to reducing the trade gap during the period under review,” a senior official of the Bangladesh Bank, the country’s central bank, told AHN.

He also said the decline in the trade deficit may not continue in the coming months because of rising prices of commodities in the international market as major economies show signs of recovery.

During the period, export earnings stood at $15.485 billion against imports of $11.556 billion, the banks's data showed.

Central bank officials said food imports continued to decline as the country has built enough stock of rice, the main food item, after record production of "Boro" and "Aman" crops in the last three consecutive years.

During the period, import of food grains dropped by 12.55 percent to $620.45 million against $709.51 million in the corresponding period in the previous fiscal.

The officials, however, said food grain imports, particularly rice, have been increasing since April.

Food grain importation stood higher at 2.976 million tons during the July-April period of this fiscal compared to 2.649 million tons in the same period last year.


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