Friday, September 22, 2017

Bangladesh starts FY2018 with rising July-August exports, remittance

  • Abdur Rahim Harmachi, Chief Economics Correspondent, bdnews24.com
    Published: 2017-09-11 03:20:24 BdST

bdnews24
The apparel sector in Bangladesh has seen impressive growth over the years accounting for more than 80 percent of the total exports earnings of the country. File photo: asaduzzaman pramanik

Bangladesh has started fiscal 2017-18 on an upbeat note by posting growths in both exports and remittance inflow in the first two months.

Exports fetched the country $6.84 billion in July and August, which is around 14 percent more than the same period last financial year and nearly 8 percent more than the target set in the budget.

To top it off, the amount of money sent by expatriate Bangladeshis grew by 16 percent year-on-year to $2.53 billion after a nosedive to a six-year low of $12.77 billion in the last fiscal year.

Economists and exporters are seeing the growths as a good sign for Bangladesh's economy.

Bangladesh Institute of Development Studies researcher Zaid Bakht told bdnews24.com on Sunday: "Export did not grow so well last year. Remittance dropped around 15 percent...Now, the good position of the two indices will impact our economy positively."

According to data released by the Export Promotion Bureau earlier in the day, the country exported goods worth $3.2 billion in July and $3.64 billion in August.

As usual, the exports grew on readymade garments that contributed $5.52 billion or over 83 percent of the total figure.

Bangladesh Garments Manufacturers and Exporters Association Vice President Mahmud Hasan Khan Babu was happy with the growth in exports.

He, however, was worried over the drop in the prices of garments. "It will need at least three to four months to understand the condition," he said.

The government targets to export $37.5 billion in the current financial year.

Last year, the country exported goods worth over $34.65 billion with a growth of 3.39 percent against a target of $37 billion.