The provided information highlights the significant decrease in Bangladesh’s imports during the first half of the fiscal year 2023-24, with imports dropping by over 18 percent compared to the same period in the previous fiscal year. This decline in imports is attributed to various economic challenges faced by the country.
According to data from the Bangladesh Bank, the decline in imports is reflected in both the settlement of letters of credit (LCs) and the overall import orders. The settlement of LCs, which represents actual imports, decreased to 33,683.51 million dollars in July-December, compared to 41,175.28 million dollars in the same period a year earlier. Similarly, the overall import orders, officially known as the fresh opening of import LCs, declined to 32,929.31 million dollars in July-December, down by 5.33 percent year-on-year.
The decrease in imports has contributed to a reduction in Bangladesh’s trade deficit, which dipped by 48.41 percent year-on-year in the last fiscal year, reaching 17.16 billion dollars. However, this reduction in the trade deficit comes amid concerns about shrinking forex reserves and depressed imports.
In response to these economic challenges, the Bangladesh Bank has implemented various measures to address the situation. These measures include policies aimed at boosting forex reserves and promoting supply-side activities. Notably, the central bank has increased its policy rate by 25 basis points to 8 percent in order to address demand-side pressures while ensuring adequate funding for priority and production sectors.
The decision to raise the policy rate marks the ninth consecutive rate hike in the past 20 months, reflecting efforts to manage consumer prices, which have remained elevated. Bangladesh’s inflation rate was reported at 9.93 percent in October, exceeding the central bank’s target of 6 percent for the fiscal year.
Overall, the data and policy measures outlined underscore the complex economic landscape facing Bangladesh, with the central bank striving to navigate challenges while promoting sustainable economic growth and stability.
source: Bangladesh`s imports drop over 18 pct in H1 of fiscal 2023-24 (thereport.live)