Bangladesh achieved remarkable improvement in balance of payments during July-November 2024-25.
*The balance of trade improved markedly, with the deficit decreasing from $9,856 million in 2023-2024 to $6,680 million in 2024-2025, driven by 12.3 per cent increase in readymade garment exports.
* The current account balance transformed from a deficit of $3,939 million to $499 million, supported by a considerable rise in private remittances, which surged by 26.4 per cent.
*Increased Foreign Direct Investment (FDI): Foreign direct investment declined from $614 million to $142 million, alongside a considerable rebound in portfolio investments that shifted from net deficit to net inflow of $60 million.
*Improved Reserve Assets: Reserve assets at Bangladesh Bank recovered significantly, increasing from $4,898 million in the previous fiscal year to $2,143 million in the current fiscal, reflecting enhanced overall liquidity and stability of the economy.
Latest data released by Bangladesh Bank on Thursday shows a notable recovery in the country's balance of payments for the period of July to November 2024-2025, with improvements across multiple sectors compared to the corresponding period of 2023-2024. The trade gap has narrowed, current account deficits have reduced, and foreign direct investment continues to decline.
The trade balance improved significantly, shrinking from a deficit of $9,856 million in July-November 2023-2024 to $6,680 million in the corresponding period of 2024-2025. Export growth, particularly in the readymade garment sector, surged by 12.3 per cent increasing exports from $14,352 million to $16,113 million. Meanwhile, imports declined marginally by 1.2 per cent, from $26,324 million to $26,010 million, reflecting a more controlled approach to imports.
The current account balance also showed a remarkable turnaround, increasing from a deficit of $3,939 million to $499 million in 2024-2025. This improvement can largely be attributed to an increase in secondary income, primarily from private transfers like workers' remittance inflows, which rose by 26.4 per cent to $11,137 million.
In the capital account, capital transfers climbed from $59 million to $163 million, enhancing overall financial stability. The financial account deficit reduced from $811 million to $206 million.
Portfolio investments increased from $38 million to $60 million.
Additionally, reserve assets at Bangladesh Bank demonstrated a robust recovery, recovering from $4,898 million in July-November 2023-2024 to $2,143 million in the current reporting period. But gross official reserves decreased from $25,487 million to $24,895 million year-on-year.
Overall, the data signals a positive trajectory for Bangladesh's balance of payments, showcasing the resilience of its economic framework amidst global economic challenges. The improvements in trade and current account balance showed growth and recovery for the nation.
