Trade in services reaches $8.5b in July-February

[Black_cats]

Trade in services reaches $8.5b in July-February
FE Online Report | Published: May 02, 2018 12:49:54 | Updated: May 02, 2018 14:01:47

https://thefinancialexpress.com.bd/trade/trade-in-services-reaches-85b-in-july-february-1525243794

A representational image/Collected

The country’s trade in services stood at US$8.56 billion in the first eight months of the current fiscal year.

It is an around 24 per cent rise in value from $6.91 billion in the same period of the last fiscal year, according to the latest statistics of the central bank.

Tourism, transportation, information, telephone communications and financial services are major components of the service trade.

Data of trade in services is a part of the Balance of Payments (BoP) statistics.

Bangladesh Bank (BB) data showed that export earnings from services, usually presented as receipts of services and income account, stood at $2.80 billion in July-February of this fiscal year as against $ 2.40 billion in the same period of FY17.

Import payments for services, presented as debit or payments of service account, jumped by 27 per cent to $5.75 million in July-February period of the current fiscal year, which was $4.51 billion in the same period of the last fiscal year, it revealed.

The BB data found that deficit in service trade also jumped to $2.95 billion in the first eight months of the current fiscal year, which was $2.11 billion in the same period of FY17.

 

[Nilgiri]

So the jump in the trade is fuelled by import of more services (because of lack of BD human capital quality)...when BD should be looking to export way more....especially given service import largely has little investment multipliers (unlike say a lot of merchandise imports).

Where is the ITES boom that was promised in a dozen threads?

@Skies @Mage @Ashes @Centaur @Tanveer666

Exports:

stood at $2.80 billion in July-February of this fiscal year as against $ 2.40 billion

Imports:

jumped by 27 per cent to $5.75 million (billion) in July-February period of the current fiscal year, which was $4.51 billion in the same period of the last fiscal

 

[bluesky]

So the jump in the trade is fuelled by import of more services (because of lack of BD human capital quality)...when BD should be looking to export way more....especially given service import largely has little investment multipliers (unlike say a lot of merchandise imports).

I think, it is tourism sector where BD is getting most of the deficit. More than 11 Lakh of people visit India every year and their expenditure there causes India's balance to swell in its favor at the expense of BD. It is negative for BD.

 

[fiza200]

If govt promote tourism then it will be increase more.

 

[Nilgiri]

I think, it is tourism sector where BD is getting most of the deficit. More than 11 Lakh of people visit India every year and their expenditure there causes India's balance to swell in its favor at the expense of BD. It is negative for BD.

Still the projected ITES boom by BAL should have more than compensated for it....but again falls short.