2 weeks ago
Bangladesh Trade Deficit Hits Three-Year High of $27.28 Billion
Bangladesh is a country that buys things from other countries and sells things to other countries.
When a country buys more than it sells, the difference is called a trade deficit.
Last year, Bangladesh's trade deficit grew to its highest level in three years.
The deficit reached $27.28 billion, about 34 percent bigger than the year before.
Imports, the things Bangladesh buys, went up, but exports, the things it sells, stayed about the same.
Most of the extra cost came from more expensive fuel because of a conflict in West Asia.
Some experts warn this does not mean the country's factories are really growing stronger.
Machines and raw materials used to build industry are still not being imported much.
However, Bangladeshis working abroad sent home a record amount of money, which helped protect the country's finances.
Because of that money, the bigger trade gap has not yet caused a money crisis.
Bangladesh's trade deficit widened to a three-year high of $27.28 billion in FY26, surging 34% year-on-year.
Exports stayed nearly flat at $43.85 billion while imports rose 10.5% to $71.14 billion, the largest annual import increase since FY22.
Analysts attribute the widening gap mainly to global factors, including higher petroleum prices from the West Asian conflict, tariff barriers and supply disruptions.
RAPID chairman Abdur Razzaque cautioned that higher imports do not signal stronger investment, as capital-machinery and industrial raw-material imports remain weak.
Record remittances of $35.6 billion helped contain the current-account deficit to around $1.6 billion, averting an immediate balance of payments crisis.
- Who
- Bangladesh's central bank and analysts at CPD and RAPID, including Khondaker Golam Moazzem and Abdur Razzaque.
- What
- Bangladesh's trade deficit widened to a three-year high of $27.28 billion in FY26, a 34% jump year-on-year.
- Where
- Bangladesh.
- When
- FY26 (financial year 2026), with imports posting their largest annual increase since FY22.
- Why
- Global factors, including higher petroleum prices from the West Asian conflict, tariff barriers and supply disruptions, drove the widening gap.
Cautionary view on rising imports
Balanced recovery view
Is the higher import bill a sign of strength?
Cautionary view on rising imports
Caution: the increase should not be read as a sign of stronger investment or domestic activity, because imports of capital machinery and industrial raw materials remain weak and private credit growth is at a historic low.
Balanced recovery view
The import recovery is not necessarily a bad sign after years of import compression amid inflation, as more food, fuel, essential consumer goods and production inputs can ease supply constraints and reduce price pressures.
What drives the widening trade deficit?
Cautionary view on rising imports
Global factors — higher petroleum prices from the West Asian conflict, tariff barriers in key markets and supply disruptions — are the main drivers rather than domestic demand.
Balanced recovery view
The subdued state of domestic demand and investment, shown by historic-low private credit growth, also plays a role in the country's trade and economic picture.
Key facts
- Trade deficit
- $27.28 billion (three-year high, FY26)
- Year-on-year change
- +34%
- Exports
- $43.85 billion (nearly flat year-on-year)
- Imports
- $71.14 billion (up 10.5%, largest annual increase since FY22)
- Remittances
- $35.6 billion (record in FY26)
- Current-account deficit
- Around $1.6 billion
- Data source
- Bangladesh central bank data cited in a The Daily Star report
Quotes
Khondaker Golam Moazzem
Research director at the Centre for Policy Dialogue
“The increase in aggregate imports has not yet been accompanied by a broad‑based revival in productive investment. A larger trade deficit can be deemed healthy when it reflects imports of machinery, technology and other inputs that expand future productive and export capacity.”
thehansindia.com
“Global factors, rather than domestic demand, were the main drivers of the widening trade gap. Import value surged due to higher petroleum prices from West Asian conflict, while tariff barriers in key markets and supply disruptions dampened export orders.”
thehansindia.com
Sources
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