Bangladesh trade deficit hits three-year high at $27.28 billion

Dhaka: Bangladesh’s trade deficit widened 34% year-on-year to $27.28 billion in FY2025-26, marking its highest level in three years, as imports surged while exports remained largely stagnant.

According to Bangladesh Bank data, imports rose 10.5% to $71.14 billion, while exports stood at $43.85 billion, virtually unchanged from the previous fiscal year.

Economists attributed the deterioration largely to global factors, including higher petroleum prices, trade tariffs imposed by the Trump administration, persistent inflation in Western economies and disruptions caused by geopolitical conflicts.

However, analysts cautioned that the rise in imports does not necessarily indicate a strong recovery in domestic investment. Capital machinery imports remained weak, while industrial raw-material imports were also subdued, suggesting that the increase was not yet translating into a broad-based investment revival.

Despite the wider trade gap, Bangladesh’s external position remained relatively stable. Remittances reached a record $35.6 billion, helping limit the current-account deficit to around $1.6 billion. The country’s overall balance of payments recorded a $6.6 billion surplus.

Economists said stronger remittances and reserves have provided Bangladesh with valuable macroeconomic space, but stressed that the next challenge is to convert this stability into productive investment, stronger industrial activity and export growth.

They also urged greater investment in renewable and alternative energy sources to reduce dependence on imported fuel and shield the economy from global energy-price volatility.