Published : 10 Apr 2026, 06:57 AM
Updated : 21 Aug 2026, 03:34 PM
Bangladesh’s trade deficit has widened in the first eight months of the 2025-26 fiscal year, , driven by declining export earnings and a surge in import costs for Ramadan.
According to updated data from Bangladesh Bank, the trade deficit stood at $16.913 billion at the end of February.
This marks an increase of $3.134 billion from January figures and a year-on-year rise of $3.207 billion compared with the same period in the previous fiscal year.
In the corresponding period of the 2024–25 fiscal year, the deficit was recorded at $13.706 billion.
Analysts warn that the ongoing Iran war could further exacerbate the deficit in the coming months.
Despite the widening trade gap, stronger remittance inflows during Ramadan and before the general election helped cushion external sector pressures.
As a result, both the overall balance and the financial account recorded surpluses.
Bangladesh’s overall balance of payments posted a surplus of $3.427 billion in the first eight months of FY2025–26.
Similarly, the financial account surplus rose significantly to $4.083 billion, up from $435 million in the same period a year earlier.
However, the current account deficit, while still negative, narrowed to $1.00 billion from $1.472 billion in the previous fiscal year’s corresponding period.
The services sector deficit increased to $3.844 billion due to rising payments for transport, travel, foreign loan repayments, and other services. This was up by $316 million from $3.528 billion a year earlier.
Bangladesh Bank data shows imports during the July–February period reached $46.107 billion, a 5.6 percent increase year-on-year.
In contrast, exports declined by 2.6 percent to $29.261 billion, compared with $33.006 billion in the same period of the previous fiscal year.
As a result, the country had to pay $16.913 billion more in import liabilities than it earned from exports.
Remittances and foreign loans played a crucial role in financing the deficit. In the first eight months, remittance inflows through banking channels rose by 21.4 percent to $22.45 billion, up from $18.49 billion a year earlier.
Speaking to bdnews24.com, Bangladesh Institute of Bank Management Director General Md Ezazul Islam said: “Our exports declined during this period, and the war had not even begun then. As import costs rise due to the war, the impact will be reflected in March data.”
He warned that the deficit could widen further if export earnings do not improve.
Payments for letters of credit opened in March may fall due in April, which could add pressure if export receipts remain weak.
He added that without the increase in remittance inflows, the deficit would have been even higher.
