Export growth trims trade deficit to $13.70 billion in 8 months

Bangladesh’s trade deficit has narrowed further as exports have outpaced imports.

In the first eight months of the fiscal year 2024-25, the gap fell by 4.41 percent from the same period last year.

Data show that from July to February, the trade deficit stood at $13.70 billion.

During the same period of the previous fiscal year, the gap was $14.32 billion.

The balance of payments also showed improvement, with the current account deficit shrinking to $1.27 billion during this period. A year earlier, it was $4.07 billion.

The financial account surplus more than doubled as well, rising by over 116 percent.

From July to February, the surplus stood at $1.42 billion, up from $654 million in the same months of the previous year.

The current account reflects a country’s regular external transactions, including export and import activities along with other income and expenses.

A surplus indicates that no borrowing is needed to finance day-to-day trade.

A deficit, however, means the country must rely on external loans.

The financial account, on the other hand, tracks the movement of foreign loans, assistance, direct investment, and portfolio investment.

According to official figures:

· Exports rose by 9.10 percent in the first eight months of the fiscal year, reaching $30.03 billion in goods and services, up from $27.54 billion in the same period last year.

· Imports increased by 4.50 percent, totalling $43.73 billion over the eight months, compared with $41.87 billion during the corresponding period of the previous financial year.

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," he added.