State of the Bangladesh Economy in FY2021-22
Independent Review of
RBD
Bangladesh's Development
Macroeconomic Management
Negative balance of payment put pressure on the exchange rate
despite robust export growth
➤ Current account recorded a significant negative balance to the tune of USD
(-) 4.8 billion for the Jul-Oct period of FY22, largely due to the rise in trade
deficit which was as high as USD (-) 9.1 billion
■ On a positive note, export earnings bounced back and attained a growth
rate of 24.3% during the first five months of FY22
Import payments growth was even higher, to the tune of 51.4% in Jul-
October FY22 attributed to higher demand for commodities, including
intermediate goods to service export orders, and increased prices
-
➤ Capital machinery import also recovered to pre-COVID trend
➤ Remittances inflow declined by (-) 21.0% during Jul-Nov FY22
➤ Despite a large surplus in the financial account balance (USD 3.8 billion),
the overall balance figure was negative to the tune of (-) USD 1.3 billion and
put pressure on foreign exchange reserve and exchange rate
CPD (2021): State of the Bangladesh Economy in FY2021-22 (First Reading)
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