Bangladesh’s trade deficit widened to $2.08 billion in July as imports rose 8.6 per cent while export earnings fell 1.6 per cent…reports Asian Lite News Desk
Bangladesh’s trade deficit widened by 38.36 per cent year on year to $2.08 billion in July, driven by stronger import growth and a decline in exports, according to a report by Dhaka based The Daily Star.
The trade deficit stood at $1.50 billion in July of the previous financial year.
Data from Bangladesh Bank showed that the country’s import bill increased 8.6 per cent year on year to $6.44 billion in July. Meanwhile, export earnings fell 1.6 per cent to $4.35 billion.
Petroleum imports recorded the sharpest increase, rising 83.3 per cent to $1.37 billion during July of fiscal year 2026-27.
The rise came amid higher global crude oil and petroleum product prices linked to the conflict in the Middle East and disruptions around the Strait of Hormuz.
Industry sources said import payments had increased in recent months as higher oil prices raised the cost of petroleum purchases, the report said.
The widening trade gap was accompanied by a decline in Bangladesh’s current account surplus. The current account balance fell to $66 million in July from $125 million during the same month a year earlier.
The current account tracks a country’s net transactions in goods, services, income and transfers with the rest of the world.
At the same time, Bangladesh’s financial account deficit narrowed slightly to $677 million in July from $746 million in the corresponding month of the previous fiscal year.
The financial account records financial claims and liabilities involving non residents, including foreign direct investment, loans, trade credit, aid flows, portfolio investment and reserve assets.
Within the financial account, net foreign direct investment declined to $116 million in July from $122 million a year earlier.
Despite the improvement in the financial account deficit, Bangladesh’s overall balance deficit widened to $633 million in July, compared with $545 million in the same month of the previous financial year.
The latest figures highlight growing pressure on Bangladesh’s external accounts as rising import costs, particularly for petroleum products, coincide with weaker export earnings.
