The first month (July) of the current fiscal year of 2014-2015 saw some surplus in trade but in August it marked a fall, widening the average trade deficit for the two months.
Trade deficit refers to a scenario where import expenditures surpass the export earnings.
During the first two months (July-August) country's import expenditures surpassed export earnings.
According to statistics of the Bangladesh Bank, trade deficit reached 99 crore 90 lakh US dollars in July-August which was nearly 21 crore dollars more than that of the same period in the last fiscal year. In July-August of the last 2013-2014 fiscal year trade deficit was 79 crore dollars.
In July of the current fiscal year the trade surplus was 18.50 crore dollars due to less expenditures on imports. The free on board (FOB) expenditures in the first two months amounted to 608.90 dollars.
Export earnings registered 509 crore dollars during that time. (FOB import-export account is calculated on the basis of loading of goods and commodities on ships). Like commodity trade, deficit has increased in service trade too. The deficit of service trade was 88 crore dollars in July-August.
Although there are deficits in both the commodity and service trades there is a surplus balance of 32.70 crore dollars in the country because of a robust growth in foreign remittance. But this surplus is less by 31 crore dollars than that of the last fiscal year. There was a surplus of 63.60 crore dollars during the July-August last year.
The foreign direct investment (FDI) in the country increased during the July-August of the current fiscal year. During the two months, the value of the FDI was 24.40 crore dollars in the country which was 10 per cent more than that of the last year.
Compared to the first two months of the last fiscal year investment in the share market (portfolio investment) decreased to some extent. The investment in July-August was 6.90 crore dollars which was 11.30 crore dollars in the same period last year.
However, if foreign remittance is considered the country's trade shows a surplus of 78.20 crore US dollars in the two months of the current fiscal.