The New Nation - Internet Edition

BUSINESS REPORT

Country's balance of payments fell 89.7 percent in July-May to $105 million from the same period a year earlier due to soaring food and oil import costs, Bangladesh Bank said.

Imports for July-May increased by more than 24 percent from a year earlier, while exports increased 15.27 percent, bringing the trade deficit to $5.04 billion from $3.29 billion in the same period of last year, it said.

The trade deficit widened mainly due to sharp rises in world prices of grains, including rice and wheat, as well as fertiliser and oil, a central bank official said. Natural disasters that hit the country last year destroyed nearly 2 million tonnes of rice, the country's staple, leading to a sharp rise in imports.

Officials said strong remittances from more than 5 million Bangladeshis working abroad helped offset the impact of the trade shortfall and kept the overall balance of payments in surplus. Bangladesh received $7.9 billion in remittances in the 11-months period, more than 31 percent higher than the same time of the previous year.

But net foreign direct investments fell 11 percent to $648 million in July-May.