Bangladesh’s trade deficit expanded significantly during the first seven months of the current fiscal year as imports increased while export earnings declined, according to the latest balance of payments data released by the central bank, The Business Standard reported.
Data published by Bangladesh Bank shows that the country’s trade deficit reached $13.80bn during the July–January period of FY2025–2026, compared with $11.75bn recorded during the same period of the previous fiscal year. The widening gap reflects a rise of more than $2bn in the deficit over the year.
The figures were compiled before the escalation of geopolitical tensions in West Asia involving the US, Israel and Iran, meaning the potential impact of the conflict on Bangladesh’s external trade position is not yet reflected in the data, The Business Standard noted.
Export performance weakened slightly during the period. Bangladesh earned $26.09bn from exports between July and January, marginally lower than the $26.37bn recorded in the corresponding months of the previous fiscal year.
At the same time, the country’s import bill continued to climb. Total imports reached $39.89bn in the first seven months of the fiscal year, up from $38.11bn during the same period a year earlier. The rise in import payments, combined with the slight decline in export receipts, contributed to the expansion of the trade deficit.
Economists attribute the widening gap primarily to this divergence between import growth and export performance. Strong domestic demand for energy, industrial raw materials and intermediate goods has sustained higher import levels, while export earnings have faced headwinds in key global markets.
Despite the deterioration in the trade balance, Bangladesh’s overall current account position showed improvement during the same period.
Bangladesh Bank data indicates that the current account deficit narrowed sharply to $381mn in the July–January period of FY2025–2026, compared with a deficit of $1.35bn during the corresponding months of the previous fiscal year.
The improvement has been largely supported by stronger inflows of remittances from Bangladeshis working abroad. Remittance receipts reached $19.43bn during the first seven months of the fiscal year, up from $15.96bn in the same period last year.
