Balance of Trade

Foreign trade plays a vital role in achieving rapid economic development of a country. Since Bangladesh is a developing country, foreign trade can be considered of pivotal importance. But unfortunately, trade balance of this country is still very unfavorable. Each year Bangladesh has to spend a huge amount of money for importing consumer goods and materials which is not a positive sign for our country. Bangladesh also spends much more for importing industrial raw materials, but it is a positive signal for our economy as it shows enhanced production of the economy. The countrys requirement of petroleum products is entirely met by import. During the last five years, current gap in trade balance of Bangladesh is the highest. It is observed from the last five year figures given that the trade gap is widening gradually. With a view to reducing the gap between exports and imports, the Government is trying to boost up the volume of exports by aiding private exporters in many ways. Arrangement of trade fairs at home and abroad is an effective measure of promoting export. Over the last few years, some non-traditional items have been enlisted in the list of exportable commodities. The trend of balance of trade of Bangladesh during the last 5 years is shown below:

Trade balance in Bangladesh

0 -100000 -200000 -300000 -400000 -500000 -600000 Trade balance (million Tk.) -510791 -505906 2005 -237123 -268355 -270395 2006 2007 2008 2009

Import and Export trend In Bangladesh

During the last five years, the average growth of import was recorded to 20.56%, the lowest 5.62% in 2008-09 and the highest 33.80% in 2007-08. Average import value during 2004-05 to 2008-09 had been Tk.1185717.00 billion. Total import value in 2008-09 had been 1580898.00 million in taka and 22981.51 million in US dollar.

Total value of exports in 2008-09 is Tk 1074992 million that reflects 9.03% increase comparing to that in 2007-08. As the volume of export of some goods, readymade garments, raw hides & skin, footwear, made-up textile articles, special woven fabrics, has risen up, the total value of export has gone up.

Export Import Trend In Bangladesh

3000000 2500000 985931 2000000 1500000 1000000 500000 0 2005 2006 Import (million Tk.) 2007 2008 Export (million Tk.) 2009 769954 962345 691950 532831 1118664 1496722 1580898 850309 1074992

Imports of Major Commodities, 2004-05 to 2008-09 (million taka) The imports data from 2005 to 2009 are given below.
Year Consumer Goods 71195 77154 101362 183909 156079 Materials for Consumer Goods 525124 695891 776134 1096276 1194389 Capital Goods Materials for Capital Goods 12857 11869 39665 16205 22289

2005 2006 2007 2008 2009

160778 177431 201503 200332 208141

Imports of Major Commodities: Major commodities that are imported by Bangladesh are consumer goods, capital goods and materials for consumer and capital goods. Materials for consumer goods are highly imported every year than materials for capital goods. The chart for the import data are given below.

Imports of Major Commodities

22289 2009 16205 2008 39665 2007 2006 2005 208141 156079 200332 183909 776134 695891 525124 1000000 Capital Goods Consumer Goods 1500000 1194389 1096276

201503 101362 11869 177431 77154 12857 160778 71195

0 500000 Materials for Capital Goods Materials for Consumer Goods

Export of Principal commodities during last five years (in million taka)
Year Readyma de garments 398149 478226 633430 734651 849673 Made up textile articles 16636 18987 27040 31610 36544 Vegetab le textile fiber 17332 22870 30021 34569 27811 Shrimp s and prawn 19915 27656 39026 41890 24338 Foot wear Hides, skins and leather 13649 15651 18421 19843 12350 Raw jute Special Woven fabrics 3823 5259 6928 7451 8432 Fertili zer Hats and other headgear 3758 3989 4615 4989 4513

2005 2006 2007 2008 2009

5358 5906 8590 11295 12593

5269 9004 11930 12874 9907

5306 4609 5851 3070 7392

Export is a good source of gearing up our GDP. There are many sectors from where BD earn by exporting. These sectors are: Readymade garments Textile Vegetable textile Shrimp and Prawn Foot wear Leather Raw Jute Special woven fabrics Fertilizer and Hats and other headgears
3

40000 35000 30000 25000 20000 15000 10000 5000 0

Export of Principal Commodities

2005 2006 Made up textile articles Foot wear

2007

2008 2009 Vegetable textile fibre Hides, skins and leather

From the above chart it is seen that vegetable fiber and made up textile articles are more exported than footwear and leather every year. In 2009 the export rate of textile has grown up and fiber goes down. Similar cases happened in leather and footwear.
25000 20000 15000 10000 5000 0 2005 Raw jute Fertilizer 2006 2007 2008 2009 Special Woven fabrics Hats and other headgear

Export of Principal Commodities

Raw jute is exported every year at a declining rate than fertilizer and hats. On the other hand fertilizer has been exported more rather than raw jute and other commodities.

Export of Principal Commodities

900000 800000 700000 600000 500000 400000 300000 200000 100000 0 2005 2006 2007 2008 Shrimps and prawn 2009 Readymade garments 19915 27656 39026 41890 24338 398149 478226 633430 734651 849673

Most of all readymade garments have the highest export rate than all other commodities exported. The rising rate indicated that the huge amount of garments a exported every year which is a positive sign for our countys growth of GDP.