Service trade shoots up by 31pc in FY19
Economic Reporter :
Annual value of the country's trade services shoot up by around 31 per cent in the past fiscal year (FY19), according to the latest statistics of the central bank.
The Data showed that total trade in services in FY19 stood at US$17.73 billion, which was $13.27 billion in FY18. Trade in services estimates the value of services exchanged between residents and non-residents of an economy, including services provided through foreign affiliates established abroad
At the same time, deficit in service trade reduced significantly mainly due to 50 per cent jump in service export from Bangladesh.
Earnings from service export, generally denoted as credit or receipt in the balance of payments (BoP) table, reached $6.87 million in the past fiscal year, which was $4.53 billion in FY18.
On the other hand, import payments for service reached $10.50 billion in FY19, which was $8.74 billion in the previous fiscal year.
Thus, gap in service trade with the rest of the world declined to $3.71 billion in the past fiscal year, which was $4.20 billion in FY18.
Services usually include transport (both freight and passengers), travel, communications services (postal, telephone, satellite, etc.), construction services, insurance and financial services, computer and information services, royalties and license fees and other business services and government services.