Current Balance of Payments(BoP) Position of Bangladesh
Current Balance of Payments(BoP) Position of Bangladesh
One country’s economic performance is reflected through its Balance of payment. Balance of payments (BoP) accounts is an accounting record of all monetary transactions between a country and the rest of the world. Bangladesh is not different so. The improvement of its economy also depends on the performance of its Bop. According to a World Bank report published in 2012, The Current account balance (BoP; US dollar) in Bangladesh is 926.19 billion (World Bank indicators).
Import dependence is one of the weaknesses of BoP. The growth of import is significantly higher than that of export. If we can reduce the import dependency or increase the level of export, then it will help reduce the pressure on of our BoP. As our growth of export is lower than that of import most of the time our trade balance is negative. Bangladesh recorded a trade deficit of 1076.01 USD Million in August of 2012 (Bangladesh Bank). Our balance of trade consists of two components — import and export. Our performance of export makes us both happy and worried. Bangladesh exports mainly ready-made garments (RMG) including knitwear and hosiery (75% of export revenue).
The economy of Bangladesh is branded worldwide because of its quality RMG products. As we have massive export revenues from RMG sector, a slight change in this sector will have a significant impact on our economy. Other exports include: Shrimps, jute goods (including Carpet), leather goods and tea. Bangladesh main export partners are the United States (23% of total), Germany, United Kingdom, France, Japan and India. Bangladesh imports mostly petroleum product and oil, machinery and parts, soybean and palm oil, raw cotton, iron and steel and wheat. Bangladesh main import partners are China (17% of total), India, Indonesia, Singapore and Japan. We should not only diversify these export sectors but also improve our R&D wing.
Another strong component of BoP is remittance inflow. We
One country’s economic performance is reflected through its Balance of payment. Balance of payments (BoP) accounts is an accounting record of all monetary transactions between a country and the rest of the world. Bangladesh is not different so. The improvement of its economy also depends on the performance of its Bop. According to a World Bank report published in 2012, The Current account balance (BoP; US dollar) in Bangladesh is 926.19 billion (World Bank indicators).
Import dependence is one of the weaknesses of BoP. The growth of import is significantly higher than that of export. If we can reduce the import dependency or increase the level of export, then it will help reduce the pressure on of our BoP. As our growth of export is lower than that of import most of the time our trade balance is negative. Bangladesh recorded a trade deficit of 1076.01 USD Million in August of 2012 (Bangladesh Bank). Our balance of trade consists of two components — import and export. Our performance of export makes us both happy and worried. Bangladesh exports mainly ready-made garments (RMG) including knitwear and hosiery (75% of export revenue).
The economy of Bangladesh is branded worldwide because of its quality RMG products. As we have massive export revenues from RMG sector, a slight change in this sector will have a significant impact on our economy. Other exports include: Shrimps, jute goods (including Carpet), leather goods and tea. Bangladesh main export partners are the United States (23% of total), Germany, United Kingdom, France, Japan and India. Bangladesh imports mostly petroleum product and oil, machinery and parts, soybean and palm oil, raw cotton, iron and steel and wheat. Bangladesh main import partners are China (17% of total), India, Indonesia, Singapore and Japan. We should not only diversify these export sectors but also improve our R&D wing.
Another strong component of BoP is remittance inflow. We