Bangladesh’s trade deficit decreased by US $ 290 million, or almost 10 per cent, in July and August of fiscal year 2025 (FY ’25) compared to the same period the previous year, which is a good sign for the economy of the nation. The trade imbalance for this time was US $ 2.75 billion, down from US $ 3.04 billion in July and August of FY ’24, according to current data from the central bank.
A rise in export revenue and a decrease in import expenses are responsible for the improvement in the trade balance. In the first two months of FY ’25, export earnings increased by 2.5 percent year over year to reach US $ 7.16 billion. In the same time frame, import costs decreased by 1.2 per cent to a total of US $ 9.91 billion.
Apart from the trade deficit reduction, there has been a significant advancement in the nation’s balance of payments. With the help of higher remittance inflows, the current account has turned positive. From July to August, there was a surplus of US $ 111 million as opposed to a deficit of US $ 610 million during the same time in the previous fiscal year.
Even if it has drastically decreased to a deficit of US $ 145 million in the July–August period from US $ 1.33 billion in the previous year, the financial account still displays a negative balance. A part of the balance of payments, the financial account keeps track of obligations or claims made against non-residents for financial assets, such as investments and reserve assets from different industries.
All things considered, these changes show that Bangladesh’s economic indicators are gradually becoming better, suggesting that there may be more encouraging trends in store for the future months.
