Bangladesh’s trade deficit has further decreased in the first half of the current fiscal year, largely due to a positive trend in exports.
According to the latest data from Bangladesh Bank, the country’s exports totaled $22.32 billion between July and December of FY 2024-25, showing an 11% increase compared to the same period last year. In the first half of FY 2023-24, exports were $20.18 billion.
Imports during the same period amounted to $32.08 billion, a 3.5% increase compared to $30.99 billion in the previous year.
As a result, the overall trade deficit narrowed to $9.76 billion, down from $10.87 billion in the same period of the previous fiscal year.
Other key indicators, including the current account balance, financial account, remittances, and trade credit, have also shown improvement.
However, economists warn that the overall balance remains under pressure due to weaknesses in areas such as errors and omissions.
Zahid Hussain, former lead economist at the World Bank’s Dhaka office, said to bdnews24.com: “Exports have always been occurring, but the dollar inflow was lower than expected. This year, the reduction in the current account deficit indicates an increase in export earnings.”
Central bank data shows the trade credit deficit fell sharply to $145 million in the first half of the current fiscal year, down from $2.02 billion during the same period last year.
The current account balance posted a surplus of $33 million, compared to a $3.47 billion deficit in the first half of FY 2023-24.
The financial account recorded $1.37 billion, up from $604 million during the same period last year.
Despite these improvements, the overall balance of payments remains in deficit, amounting to $394 million, though significantly lower than the $3.45 billion deficit in the previous year.
Bangladesh Bank data indicates that errors and omissions resulted in a $2.03 billion deficit in the first six months of the current fiscal year, a sharp rise from $751 million during the same period last year.
“This indicator suggests that dollars have been spent, but their exact use remains unclear,” said the economist.
“A total of $2 billion has left the country, but the destination and purpose of the funds remain unknown. This rise in undocumented outflows is concerning.”
“There are signs of money laundering here. Bangladesh Bank should explain this matter,” he concluded.
