Bangladesh saw growth of almost 31 percent in its exports, touching $4 billion in November while remittances fell by almost 25 percent—1.55 billion, down by almost $52 million—in comparison to the same period last year. This is the fifth consecutive month when remittances showed a downtrend. 

Data released by the government showed that this is the first time since May 2020 when remittances fell close to $1.5 billion in a month. Bangladesh, which is the sixth-largest supplier of migrants, gets a big chunk of its foreign reserves through remittances.

In 2020, it received around 24 billion—close to 7 percent of its gross domestic product—in remittances. In the first five months ( July to November) of the current fiscal year, FY22, the total remittances inflow was around $8.40 billion, a decline of around 21 percent in comparison to the same period in the last fiscal. 

The drop is due to the increased usage of informal channels for transfer and less outflow of the workforce, Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue, was quoted as saying by Dhaka Tribune. This, he suggested, will increase imported inflation.

The country’s exports saw decent growth in November, touching $ 4 billion and registering a 31 percent jump. In the first five months (July to November) of the current fiscal year, FY22, exports earnings jumped to $19.89 billion, around a 24 percent increase in comparison to the same period last year. 

The apparel sector, especially ready-made garments (RMG), is behind the growth drive. However, there is a concern among exporters over growing Covid-19 in Europe and the United States, a situation that would certainly affect its orders for Christmas if countries opt to put in more restrictions. 

Furthermore, if the recently detected variant, Omicron, makes its way to Bangladesh, it will have an impact on industry and factories in the country. During the last wave, the country had to go through multiple nationwide lockdowns. 

(SAM)