Bangladesh’s trade deficit widened sharply to $23.98 billion during the first 11 months of fiscal year 2025-26 (July-May), as imports outpaced exports despite a strong rise in remittance inflows, according to the latest Balance of Payments (BoP) data released by Bangladesh Bank.

The trade gap increased by 24.77% from $19.37 billion recorded during the same period of the previous fiscal year.

According to the central bank, merchandise exports declined by 2% year-on-year to $40.04 billion during July-May, reflecting weaker export earnings. Data from the Export Promotion Bureau (EPB) also showed that exports in May fell 7% year-on-year to $4.40 billion.

Meanwhile, import payments rose 6.3% to $64.02 billion during the 11-month period, widening the trade imbalance.

Despite weaker exports, remittance inflows posted strong growth. Expatriate Bangladeshis sent home $32.77 billion during July-May, up 19.1% from $27.51 billion in the corresponding period of the previous fiscal year.

However, the increase in remittances was not enough to offset the impact of declining export earnings. As a result, the current account deficit widened to $300 million, compared with a deficit of $70 million a year earlier.

Despite the larger trade deficit, Bangladesh recorded an overall Balance of Payments (BoP) surplus of $4.01 billion during the first 11 months of FY2025-26, reversing a $1.15 billion deficit in the same period of the previous fiscal year.

The financial account also improved significantly, posting a $4.16 billion surplus, compared with a $570 million deficit a year earlier, driven mainly by higher foreign direct investment (FDI), foreign grants, and external loans.