Written by The Banking Post
Bangladesh’s trade surplus with the European Union (EU) widened by nearly 10 percent in FY2024–25, driven by strong export growth, particularly in goods, despite rising payments for services.
Data from Bangladesh Bank show the country’s current account surplus with the EU stood at Tk 2.52 trillion, marking a 9.8 percent year-on-year increase.
Total inflows rose almost 12 percent to Tk 3.26 trillion, while outflows grew faster, increasing nearly 20 percent to Tk 742 billion, mainly due to payments for services such as freight, maintenance and equipment repairs sourced from abroad.
Exports of goods, the main driver of the surplus, reached Tk 2.25 trillion, posting a strong 26 percent growth during the period.
Although the services account remained in deficit, the gap narrowed significantly. Net services outflows fell 92 percent year-on-year to Tk 2.231 billion.
The EU remains Bangladesh’s largest export destination, reflecting the strength of its export sector—particularly ready-made garments—and the country’s continued reliance on external markets. Remittances and financial flows linked to the Bangladeshi diaspora in Europe also contribute to the surplus.
However, economists warn that structural challenges could affect the sustainability of this trend. Bangladesh maintains trade surpluses with only a few partners, including the EU, the United Kingdom and the United States, while running large deficits with countries such as China, India and Indonesia.
They also caution that Bangladesh’s heavy dependence on goods exports and imported services highlights underlying structural imbalances. Moreover, the country’s upcoming graduation from least developed country (LDC) status could reduce trade preferences in the EU market, potentially narrowing the surplus in the coming years.
