CAD widens during first four months of FY '26

Bangladesh's current-account deficit widened during July-October period of the fiscal year 2025-26, driven by weaker export performance, official data show.

The deficit expanded to US$749 million, up 17 per cent from the same period a year earlier.

Export earnings rose modestly by 1.8 per cent to $14.5 billion over the four months ending October last, while import payments stood at $22.1 billion, maintaining pressure on the external balance.

Remittance inflows exceeded $10 billion during the period, providing partial relief.

The financial account recorded a surplus of more than $2.1b, a sharp turnaround from a deficit of nearly $500m in the corresponding period of the previous fiscal year.

The improvement was driven by higher foreign direct investment and net foreign aid inflows, amobg others.

As a result, the overall balance of payments posted a surplus of $1.0b during July-October, compared with a deficit of $2.1b a year earlier.

The capital account remained in surplus, though it narrowed to $95m from $163m in the same period a year back.

Jasimharoon@yahoo.com