Bangladesh’s trade deficit widens sharply as imports rise and exports slip

Bangladesh has ended fiscal 2025-26 with a $27.28 billion trade deficit, nearly 34 percent higher than the previous year and the country’s third-highest on record.

The gap widened as export earnings weakened amid hurdles including Trump-era tariffs, while import spending surged towards the end of the fiscal year.

The record deficit was $33.25 billion in FY2021-22, followed by $27.38 billion in FY2022-23.

Imports jumped 74.23 percent year-on-year to $7.17 billion in June, while exports earned $4.20 billion, further widening the annual gap.

Bangladesh imported goods worth $71.14 billion in FY2025-26, up 10.50 percent from $64.36 billion a year earlier. Export earnings slipped 0.2 percent to $43.85 billion from $43.96 billion.

Current Account Slips Deeper

The current account deficit widened sharply to $1.6 billion, from just $138 million in FY2024-25.

Bangladesh, however, maintained a nearly $8 billion surplus in its financial account, up from $3.59 billion a year earlier.

The country also recorded a $6.60 billion overall balance surplus, according to Bangladesh Bank’s latest balance-of-payments data released Sunday.

FDI Falls 15%

Net foreign direct investment fell 15 percent to $1.46 billion in FY2025-26, from $1.72 billion the previous year.

The figures show a sharp reversal from the narrowing trade deficits recorded during the previous two fiscal years. The deficit fell to $20.45 billion in FY2023-24 and $22.43 billion in FY2024-25 as tighter import controls curbed spending.