Trade deficit in services widens

Bangladesh's trade deficit in services widened to $4.63 billion in 2015 from $4.10 billion a year ago, according to central bank data.

The deficit in trade in services that include financial service, insurance and tourism was $3.16 billion in 2013.

“The gap is widening with the pace of rising export and import,” said a senior official of Bangladesh Bank. Launch of more oceangoing ships by Bangladeshi entrepreneurs could reduce the gap, he said.

BB data shows Bangladesh received $3.02 billion in services trade last year against payments worth $7.65 billion, which was one-fourth of the country's exports for the just concluded fiscal year.

The country paid $7.21 billion in 2014.

This gap in services trade was also caused by rising spending by Bangladeshis who spent more abroad than foreign tourists did in Bangladesh, according to BB data.

Such higher trade in services deficit pushed down the current account balance to $2.93 billion at the end of April this year from $3.14 billion a year ago.

Bangladesh's imports were worth nearly $36.2 billion in the first 11 months till May of the last fiscal year against full year's exports of $34.24 billion.

On the other hand, wage earners' remittance fell 2.55 percent to $14.9 billion last fiscal year.