State of the Bangladesh Economy in FY2021-22
Independent Review of
RBD
Bangladesh's Development
Analysis of External Sector Performance
Balance of Payments slides into an uncomfortable position
□ Despite the robust export growth, trade deficit posted a significant rise and rose
from USD (-) 3.49 billion to USD (-) 9.09 billion in the first four months, in the
backdrop of higher import growth
□ In view of negative growth of remittances, the current account balance also
weakened further and got into the negative terrain
The substantial increase in the financial account provided some cushion and
comfort thanks to the higher net aid flows and MLT loans
For Jul-Oct FY22, the overall balance stood at a negative USD (-) 1.3 billion
whereas the corresponding figure for FY21 was USD (+) 4.1 billion
The fall in overall balance is also reflected in the forex reserve scenario. At the end
of FY21, Bangladesh had a reserve worth about USD 46.4 billion which came down
to USD 44.9 billion in November 2021
➤ In this connection it needs to be recalled that the IMF has raised question as regards the
accuracy of accounting practices associated with estimation of foreign exchange reserve
CPD (2021): State of the Bangladesh Economy in FY2021-22 (First Reading)
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