Trade deficit widens to $19.2b in Jul-Mar FY'26

Bangladesh's trade balance deteriorated significantly during the July-March period of the current fiscal year, driven by a decline in merchandise exports, according to central bank data.
The Bangladesh Bank, which compiles the balance-of-payments (BoP) data, reported that the trade deficit stood at US$19.2 billion during the period under review.
Export earnings fell by 4.4 per cent year-on-year to $32.3 billion, while import payments rose by 4.6 per cent to $51.6 billion, the data showed.
Imports of fuel and fertiliser increased sharply.
Petroleum imports surged by 54.1 per cent and fertiliser imports by 40 per cent, partly reflecting price pressures linked to tensions and attacks involving Iran, the US and Israel in the Middle East, although a ceasefire is now in place.
Meanwhile, the current account deficit (CAD) narrowed on the back of strong remittance inflows during the period. The deficit stood at $397 million during July-March, compared with a deficit of $878 million in the same period a year earlier.
Remittances grew by 20.3 per cent to $26.2 billion, providing support to the external balance.
The financial account, another component of the BoP, recorded a surplus of $3.8 billion during the period, largely due to trade credit inflows.
Trade credit posted a surplus of $3.2 billion, compared with a deficit of $1.6 billion a year earlier.
Economists said the improvement in the current account position was mainly driven by robust remittance growth, while the financial account surplus reflected increased reliance on trade credit.
Dr Zahid Hussain, an independent economist, told The Financial Express that import payments rose partly due to trade credit arrangements, contributing to positive financial inflows.
According to him, some export proceeds were repatriated during the period, further supporting the balance of payments.
"Overall, the balance of payments situation remains favourable for the country at this moment," he said.
The overall balance of payments recorded a surplus of $3.7 billion during the period under review, compared with a deficit of $1.1 billion a year earlier.
jasimharoon@yahoo.com