Bangladesh's import orders shrink 17 pct to 57.75 bln USD in 2018-19 fiscal

[Homo Sapiens]

http://www.xinhuanet.com/english/2019-08/07/c_138291548.htm

Bangladesh's import orders shrink 17 pct to 57.75 bln USD in 2018-19 fiscal
Source: Xinhua| 2019-08-07 23:33:37|Editor: huaxia

DHAKA, Aug. 7 (Xinhua) -- Bangladesh's overall imports shrank about 17 percent in the last 2018-19 fiscal year (July 2018-June 2019), an official said Wednesday.

A Bangladesh Bank (BB) official who preferred to be unnamed said total import orders, officially known as fresh opening of import letters of credit (LCs), fell to 57.75 billion U.S. dollars in the last fiscal, a drop of 16.81 percent from the previous year.

Quoting the probationary BB data, the official, however, said the settlements of LCs or actual import payments increased by 6.03 percent year on year to 54.64 billion U.S. dollars in the last 2018-19 fiscal year.

The BB data showed Bangladesh's actual imports reached 51.53 billion dollars in the previous 2017-18 fiscal year (July 2017-June 2018) .

The growth in Bangladesh imports which usually hovers around 20 to 25 percent slumped gradually to a single digit since the end of the previous 2017-18 fiscal year owing to sluggish economic activities in the country followed by national elections held in December last year, said the BB official. Enditem

 

[bête noire]

The growth in Bangladesh imports which usually hovers around 20 to 25 percent slumped gradually to a single digit since the end of the previous 2017-18 fiscal year owing to sluggish economic activities in the country followed by national elections held in December last year, said the BB official. Enditem

Is this a good or bad thing? Good for current account no doubt but for the economy as a whole?

 

[Mage]

Is this a good or bad thing? Good for current account no doubt but for the economy as a whole?

Good for now, I think. It's a worry of this trend continues. Also depends on which sort of imports are decreasing. We should try to close the gap between imports and exports. But that should happen by increasing exports. Not decreasing imports.

 

[volatile]

seems like economy will cool down a little bit for now and will pick up shortly

 

[Bilal9]

Is this a good or bad thing? Good for current account no doubt but for the economy as a whole?

I have a hunch which @Homo Sapiens bhai can maybe confirm.

I feel that there has been massive import substitution projects going on locally (electronics, white goods, motorcycles etc.) which is quite a change from what was a year or so ago. So L/C for those imports are not being opened. Second (and this is probably the lion's share of it) industrial project and durable goods or machinery L/Cs are probably on the downswing. Third, It could be agricultural imports too which are down from India/Thailand etc. because of bumper harvest locally for rice and poultry products.

 

[TopCat]

I have a hunch which @Homo Sapiens bhai can maybe confirm.

I feel that there has been massive import substitution projects going on locally (electronics, white goods, motorcycles etc.) which is quite a change from what was a year or so ago. So L/C for those imports are not being opened. Second (and this is probably the lion's share of it) industrial project and durable goods or machinery L/Cs are probably on the downswing. Third, It could be agricultural imports too which are down from India/Thailand etc. because of bumper harvest locally for rice and poultry products.

Last year 10bln LC was opened for Rooppur plant. There were massive import for Padma bridge as well. I am not sure they opened LC for metro train or not. They probably did that too.

 

[Bilal9]

Last year 10bln LC was opened for Rooppur plant. There were massive import for Padma bridge as well. I am not sure they opened LC for metro train or not. They probably did that too.

Thanks for reminding us.

Those were massive import orders which are absent this year...

 

[Arulmozhi Varman]

A developing country shows growth when it imports a lot- for raw materials and engineering equipments so it can manufacture domestically and exports. If this imports decline for long, its a matter of concern.