Bangladesh’s trade deficit widened further in August even as stronger remittance inflows, rising foreign investment, and higher external loan inflows helped keep the overall balance of payments in surplus — though growing debt repayments underscored continued pressure on the external account, according to the latest Bangladesh Bank data.
The central bank’s report shows that the trade deficit expanded to $2.96 billion in July–August, up from $2.75 billion a year earlier, as import payments outpaced export receipts. The deterioration in trade was cushioned by a surge in remittance and improved capital inflows, pushing the current account surplus to $483 million, more than double the $191 million recorded in the same period of FY25.
During the first two months of FY26, exports rose 10.7% year-on-year to $7.93 billion, while imports increased 9.8 % to $10.89 billion. A Bangladesh Bank official said rising import demand for raw materials, intermediate goods, and energy continued to pressure the trade balance despite healthy export performance.
The services account also worsened, posting a deficit of $889 million compared with $617 million a year earlier, largely due to higher shipping and logistics costs. The primary income deficit – covering interest and profit repatriation – remained broadly unchanged at $661 million.
Remittance remained the key stabiliser, rising 18.4 % to $4.9 billion in July–August, as more migrant workers used official channels amid stricter monitoring of informal hundi networks. The inflow provided critical foreign exchange liquidity at a time of persistent outflows in the financial account.
The financial account, though still negative, improved sharply to a net outflow of $528 million from $1.17 billion a year earlier. Within this, foreign direct investment (FDI) tripled to $209 million, while medium- and long-term loan disbursements rose 91% to $741 million, reflecting improving investor sentiment.
At the same time, external debt repayments climbed 27% to $581 million, underscoring the growing servicing burden despite higher inflows.
Overall, the balance of payments turned positive at $53 million, reversing a $1.43 billion deficit a year earlier. Gross reserves rose to $31.17 billion, up 22% year-on-year. On the IMF’s BPM6 basis, reserves now cover 4.9 months of imports, compared with 4.4 months previously.
The latest data extend July’s positive trend, when Bangladesh recorded a $245 million current account surplus driven by a 30% jump in remittances. According to sector insiders, together, the July–August results show an external sector that is stabilising — but still walking a fine line between resilience and risk.
