B Mirror Report : Bangladesh’s trade deficit is widening as the country is earning less from exports than it is spending on imports.
During the first five months of the current 2025–26 fiscal year (July–November), the country’s merchandise trade deficit reached $9.407 billion, which is 15.63% higher compared to the same period of the previous fiscal year.
In the same period of the 2024–25 fiscal year, the merchandise trade deficit stood at $7.937 billion.
This information was revealed in the updated Balance of Payments (BOP) report released by Bangladesh Bank on Wednesday, January 14.
According to Bangladesh Bank, during July–November of the current fiscal year, Bangladesh imported goods worth $27.594 billion, representing a 6.1% increase compared to $26.01 billion in the same period last year.
During the same five months, export earnings were $18.18 billion, showing only a 0.6% increase from $18.07 billion in the previous fiscal year. The gap between imports and exports has caused the merchandise trade deficit to rise to $9.41 billion in the first five months of 2025–26.
Industry insiders note that imports continue to exceed exports, and rising global prices of fuel and other commodities have contributed to Bangladesh’s growing trade deficit.
A surplus in the current account means the country does not need to borrow for regular transactions, while a deficit requires the government to cover it with loans. For developing countries, maintaining a current account surplus is considered favorable. However, Bangladesh’s current account balance has now turned negative.
Data from Bangladesh Bank shows that by the end of November, the current account deficit reached $700 million, compared to $570 million during the same period last year.
Despite the current account deficit, Bangladesh’s overall balance remains in good condition. By the end of November, the overall balance stood at $7.7 billion, compared to a negative $25.4 billion at the same time last year.
During the first five months of the fiscal year, Bangladeshi expatriates sent $13.04 billion in remittances, up from $11.14 billion in the previous year a 17% increase.
Foreign Direct Investment (FDI) in Bangladesh has increased. During July–November of the 2024–25 fiscal year, Bangladesh received $400 million in FDI, which rose to $650 million in the same period of the current fiscal year.
However, foreign portfolio investment in the country’s stock market has declined. In the first five months of the current fiscal year, net foreign investment in the stock market decreased by nearly $70 million, compared to negative $28 million in the same period last year.
