No Major Risks From Widening Trade Deficit

We are forecasting Bangladesh's trade deficit to widen from US$4.7bn in FY2008/09 (July-June) to US$5.8bn in FY2009/10 and US$6.6bn in FY2010/11. However, with remittances expected to amount to more than 10% of GDP in this fiscal year and next, we see no major risks to Bangladesh's balance-of-payments position and expect the central bank's foreign reserve accumulation to continue.

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