The country’s current account deficit is likely to cross US$4.0 billion by the end of this fiscal year (FY18) over widening trade gap due to higher import payments against lower export receipts.
The current account balance may register a deficit of $4.34 billion in the FY 2017-18 from $1.48 billion a year before, according to the central bank’s latest projection, released on Monday.
The current account balance was in a surplus of $4.26 billion in the FY 16.
The projection came against the backdrop of higher trade deficit that may hit a record $13.10 billion in the FY18 against $9.47 billion in the last fiscal. The trade deficit was $6.46 billion in FY 16.
“Favourable financial account dynamics is expected to finance the widened current account, driven by high import growth and projected at around 1.5 per cent of GDP in FY18,” the central bank said in its latest monetary policy statement.
On the other hand, the Bangladesh Bank (BB) expects that the overall balance of payments (BoP) will return to a positive territory from the existing deficit level by the end of this fiscal.
The BoP surplus may reach at $393 million by the end of this fiscal against $3.17 billion in FY 17, the BB said in its projection.
The BoP surplus was $5.04 billion in the FY 16.
The balance of payments, which slid to deficit of $479 million during the July-November period of the FY 18, was in a surplus of $1.91 billion in the same period of FY 17.
The BoP deficit was $225 million in the July-October period of FY 18. It was $360 million in the first quarter (Q1) of the ongoing fiscal.