BD can’t afford higher current account deficit for 3-5 years

Business Desk :
Bangladesh will not be able to sustain a high current account deficit for three to five years, said the Policy Research Institute of Bangladesh on Sunday.
A current account deficit indicates that a country is importing more than it is exporting.
Bangladesh’s current account deficit was 4 per cent of GDP in the fiscal year of 2021-22, which was higher than the red line of 3 per cent of GDP, said PRI Chairman Zaidi Sattar.
And a country running more than 3 per cent of GDP in current account deficit for three-four years is likely to face financial crisis, he said at an event titled “Development Aspirations with Domestic Resource Mobilisation amidst Macroeconomic Challenges” at the Hotel Sheraton Dhaka.
“It is a bad idea. I don’t think we can sustain the current account deficit at 3-4 per cent of GDP for three to four years. We can’t afford it.”
In his presentation, he said Bangladesh’s economy is facing three challenges, including inflation and current account deficit. External debt is expected to pose another challenge.
“There is no silver bullet. Challenges are there. There are various options that need to be considered,” he said.