Bangladesh's external deficit grows to $749 mn in Jul-Oct FY26

The gap widened by 17 per cent year on year (YoY) to $749 million during July-October of fiscal 2025-26 (FY26).

During the first four months of FY26, import payments rose by 5.5 per cent YoY to $22.11 billion.

In contrast, export earnings grew by just 1.8 per cent to $14.54 billion, central bank data showed.

As a result, the gap between imports and exports, known as the trade deficit, widened to $7.57 billion in the four months, up from $6.68 billion a year earlier.

Industry insiders cautioned that imports may climb further after the upcoming elections, and that may put additional strain on foreign currency balances.

They stressed the need to boost export earnings and remittance inflows to offset the rising import bill.

In the four-month period, the financial account, which tracks money coming in through foreign investment, loans, aid and other financial transactions, recorded a surplus of $2.17 billion, reversing a $499-million deficit in the same period last fiscal.

During July-September alone, it had posted a $1.66-billion deficit, indicating a sharp turnaround later.

Net foreign direct investment also improved, rising to $445 million from $260 million a year earlier, according to domestic media outlets.

Overall, the country’s balance of payments—which combines trade, income, and financial flows—recorded a surplus of $1.08 billion during the four months compared with a $2.19-billion deficit in the corresponding period last fiscal.

At the end of October, the country's gross official foreign exchange reserves stood at $27.57 billion—up from $19.83 billion a year earlier.

ALCHEMPro News Desk (DS)