Written by The Banking Post
Bangladesh’s current account balance posted a sharp improvement in FY2024–25, buoyed by strong remittance inflows and export growth, though a persistent trade deficit kept the overall position slightly negative.
According to central bank data, the current account balance improved by nearly 98 per cent year-on-year. The gain was driven by a 38.1 per cent rise in net workers’ remittances and a 17.1 per cent increase in export earnings on a free-on-board (f.o.b.) basis.
Despite the strong recovery, the current account remained in a marginal deficit of Tk 15.1 billion.
The trade gap continued to weigh heavily on the external balance. The deficit stood at Tk 2.47 trillion in FY25, only slightly narrower than Tk 2.49 trillion a year earlier.
A central bank official said the modest improvement reflects export growth outpacing imports, signalling some easing of external pressures.
Export earnings rose to Tk 5.31 trillion during the fiscal year, while imports climbed to Tk 7.78 trillion, highlighting continued dependence on foreign goods and industrial inputs.
Remittances, a key component of secondary income, reached Tk 3.75 trillion, providing a critical buffer against external imbalances.
However, outflows remained substantial. Payments for services totalled Tk 688.1 billion, while primary income outflows stood at Tk 609.8 billion, offsetting much of the gains from exports and remittances.
Economists say the data presents a mixed picture. While external stability has improved, structural weaknesses persist due to strong import demand.
“The improvement is encouraging but fragile,” said economist Zahid Hussain. “Without export diversification and better management of import demand, pressure on the external account will continue.”
He also warned that rising geopolitical tensions, particularly in the Middle East, could pose fresh risks to maintaining the current account balance in the coming months.
