B Mirror Report: Bangladesh’s external trade deficit has surged to $22.21 billion in the first 10 months of the current 2025–26 fiscal year, driven by rising import costs and relatively weak export growth, according to the latest data from Bangladesh Bank.
The central bank’s Balance of Payments (BoP) update released on Monday showed that the deficit rose by nearly 22 percent compared to the same period of the previous fiscal year, when it stood at $18.23 billion.
Officials and sector experts attribute the widening gap to higher global commodity prices, increased import costs of raw materials and energy, and slower export growth compared to imports.
Between July and April, imports increased to $58.22 billion, up 6.2 percent year-on-year. In the same period, export earnings declined slightly by 1.5 percent, highlighting the growing imbalance in external trade.
The widening gap between import payments and export earnings has placed additional pressure on the country’s external sector, raising concerns over macroeconomic stability.
Despite the trade deficit, Bangladesh’s current account deficit improved, narrowing to $1.07 billion by April, compared to $1.64 billion in the same period last year.
The overall balance of payments position, however, remained positive at $3.74 billion, a significant improvement from a deficit of $650 million in the previous year.
Remittance inflows from expatriate Bangladeshis rose sharply by 19.5 percent, reaching $29.32 billion during the July–April period, compared to $24.53 billion a year earlier.
Foreign direct investment (FDI) also showed moderate growth, reaching $1.14 billion, up from $1.43 billion in the same period of the previous fiscal year.
However, portfolio investment in the stock market remained negative, with a net outflow of $132 million, indicating continued foreign investor withdrawal from equities.
Economists say that while improving remittance and overall balance provide some relief, the widening trade deficit remains a key vulnerability for the economy, requiring sustained export diversification and import management measures.
