Trade deficit dropped by $632m in eight months as exports grow more than imports

Bangladesh’s trade deficit continues to decline in the 2024-25 financial year (FY25) as export growth surpasses import expansion.

The deficit fell by 4.41 per cent in the first eight months of FY25.

The July-February period of the fiscal saw a year-on-year decrease of $632 million, according to the latest Bangladesh Bank data released on Sunday.

The central bank said the trade deficit in the FY25 from July to February stood at $13.70 billion from $14.32 billion in the same period of the previous fiscal year.

Exports grew by 9.10 per cent in the first eight months of the current fiscal year and amounted to $30 billion, up from $27.54 billion in the same period last year.

On the other hand, imports rose by 4.5 per cent and in the current fiscal stood at $43.73 billion from $41.87 billion in the previous fiscal.

An analysis shows that the trade deficit has narrowed due to the increase in imports along with exports.

According to the balance of payments data, the current account deficit has declined by 68.90 percent in the first eight months.

The current account deficit during the period stood at $1.27 billion, down from $4.7 billion in the same period of the previous fiscal year.

Again, in the July-February period of the current fiscal year, the financial account stood at $1.42 billion, up from $654 million in the same period last year.

That means an increase in the surplus of over 116 per cent.

Former World Bank chief economist for Bangladesh Zahid Hussain told bdnews24.com, “The fiscal balance has improved a bit from before. Remittances topped $3 billion in March. It is expected that the balance of payments in March will be better than this month."