Bangladesh's current- account deficit under the balance of payments narrowed to Tk 698.81 billion at the end of FY24, a significant improvement from the Tk 1.085-trillion deficit recorded in the previous financial year.
The more than 35 per cent reduction was primarily driven by a 5.2 per cent increase in exports and a robust 22.5 per cent growth in secondary income, according to data released by the Bangladesh Bank on Thursday.
The central bank analysed four key components of the current account balance - trade balance, services, primary income, and secondary income.
In FY24, the current account balance improved by 35.6 per cent (Tk 386.77 billion) compared to FY23. This was largely attributed to a 23.9 per cent rise in net remittances, a major component of secondary income, and a 5.2 per cent growth in export value.
The trade deficit decreased to Tk 2.493 trillion in FY24 from Tk 2.707 trillion in FY23.
Exports reached Tk 4.941 trillion in FY24, up 7.0 per cent from Tk 4.619 trillion in FY23.
Manufactured goods accounted for 97 per cent of total exports, totalling Tk 4.792 trillion, consistent with the previous year's export composition.
The US emerged as the largest export destination, purchasing goods worth Tk 843.11 billion (17.1 per cent of total exports).
Other major destinations included Germany, accounting for Tk 538.34 billion or 10.9 per cent, the UK for Tk 497.52 billion or 10.1 per cent, Spain for Tk 385.88 billion or 7.8 per cent, and France for Tk 253.12 billion or 5.1 per cent, according to the Bangladesh Bank flagship publication.
Imports in FY24 totalled Tk 7.414 trillion, a slight decline from Tk 7.441 trillion in FY23.
As for imports, food grains and other commodities accounted for Tk 228.9 billion or 3.1 per cent and Tk 7.185 trillion or approximately 97 per cent, respectively.
China remained the top supplier, with imports from there valued at Tk 2.117 trillion (28.6 per cent of total imports).
Other key suppliers included India, accounting for Tk 998 billion or 13.5 per cent, Indonesia for Tk 416.4 billion or 5.6 per cent, the US for Tk 320.1 billion or 4.3 per cent, and Brazil for Tk 308.5 billion or 4.2 per cent.
The net deficit in the services account widened by Tk 178.02 billion, reaching Tk 436.2 billion in FY24 from Tk 258.2 billion in FY23. This was driven by an 18.9 per cent increase in debit compared to a marginal 0.4 per cent rise in credit.
The primary income account also recorded a higher net deficit of Tk 480.0 billion in FY24, up from Tk 333.6 billion in the previous fiscal year.
While investment income saw an increase of Tk 10.5 billion and other investment income rose by Tk 11.5 billion, direct investment income decreased by Tk 955 million in FY24.
Secondary income, a vital component of the current account, registered a net inflow of Tk 2.710 trillion in FY24, up from Tk 2.213 trillion in FY23.
Remittances accounted for a substantial portion, rising by 23.9 per cent or Tk 508.3 billion to Tk 2.634 trillion.
Receipts under the general government amounted to Tk 8.1 billion, while other transfers contributed Tk 2.702 trillion in FY24.
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