State of the Bangladesh Economy in FY2023-24 (First Reading)
Independent Review of
RBD
Bangladesh's Development
☐ The terms of trade (defined in Table 5.3 as the
import earning capacity of the average export
price of 1 dozen RMG in the USA in terms of
average relative prices of selected items in the
global market) evince a mixed picture. The data
reinforces the need for moving into the higher
value segment of the RMG market through intra-
RMG diversification (MMF, Synthetic and
polyester based items) as also market and product
diversification of Bangladesh's export basket.
➤ Attracting investment (both local and FDI)
to the SEZs should be the way forward by
taking advantage of the triangulation of
investment, multi-modal transport, and
trade connectivity.
Export performance: Terms of trade
Table 5.3: Terms of Trade for selected commodities
taking RMG price per dozen (July-October) in the
U.S.A as reference
Commodities
Units
FY22 FY23 FY24
Crude oil,
average
($/bbl)
2.18
1.40 1.77
Palm oil
($/mt)
22.33
22.09 17.29
Soybean oil
($/mt)
36.00
27.20 23.11
Rice, Thai A.1
($/mt)
9.51
7.25
12.02
Wheat, US HRW
($/mt)
9.34
6.17
6.53
Cotton, A Index
LNG, Japan
($/kg)
0.06
0.04 0.04
($/mmbtu)
0.49
0.21
↑ 0.26
Source: Authors' Estimation based on USITC (2023) and The Pink
Sheet (2023).
CPD (2023): State of the Bangladesh Economy in FY2023-24 (First Reading)
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