B Mirror Report: Bangladesh’s trade deficit widened significantly in the first nine months of FY2025-26 as import payments increased while export earnings declined, raising fresh concerns over external sector stability.
According to the latest Balance of Payments (BoP) report released by Bangladesh Bank, the country’s merchandise trade deficit stood at $19.17 billion during the July-March period, marking a 24.13 percent increase from the $15.45 billion deficit recorded in the same period of the previous fiscal year.
The central bank data showed that imports during the period rose 4.6 percent year-on-year to $51.56 billion, mainly driven by higher global prices of fuel, raw materials and essential commodities. In the corresponding period of FY2024-25, imports totaled $49.31 billion.
In contrast, export earnings fell 1.1 percent to $32.38 billion from $33.83 billion a year earlier, widening the gap between imports and exports.
Economists and sector insiders said rising global commodity prices, especially for fuel and industrial raw materials, along with higher demand for foreign currency, contributed to the growing trade imbalance.
Despite the wider trade deficit, the country’s current account deficit narrowed during the period. The report showed that the current account deficit stood at around $400 million at the end of March, down from $870 million in the same period of the previous fiscal year.
A current account surplus generally indicates that a country can manage regular international transactions without borrowing, while a deficit means the government may need external financing.
Bangladesh’s overall balance of payments improved substantially during the period. The overall balance recorded a surplus of $3.65 billion, compared to a deficit of $1.10 billion in the corresponding period of the previous fiscal year.
The improvement was supported by strong remittance inflows. Expatriate Bangladeshis sent home $26.20 billion in remittances during the first nine months of the fiscal year, up 20.3 percent from $21.78 billion in the same period last year.
The report also showed mixed trends in foreign investment. Foreign direct investment (FDI) increased to $1 billion during July-March of FY2025-26, compared to $1.31 billion in the same period of the previous fiscal year.
However, foreign portfolio investment in the stock market remained negative. Net foreign investment outflow from the capital market stood at $107 million during the first nine months of the fiscal year, slightly higher than the negative $105 million recorded a year earlier.
