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Current-account surplus doubles in August, boosting growth outlook

Stronger remittance and export earnings lift external position; investment shows early signs of recovery

Written by The Banking Post


Bangladesh’s current-account surplus nearly doubled in August, driven by a surge in remittance inflows and robust export performance, signalling a rebound in economic activity.

According to Bangladesh Bank data released Thursday, the current-account surplus rose to $483 million in August 2025, up from $246 million in July — a jump of almost 96 per cent.

The surplus indicates that Bangladesh is earning more from exports of goods and services than it spends on imports and income payments abroad, making the country a net lender to the rest of the world.

Exports grew by nearly 11 per cent during the month, while imports expanded by just over 9 per cent. Knitwear exports rose 8.7 per cent to $3.94 billion, and woven garments increased around 10 per cent to $3.17 billion.

Remittance earnings also surged, reaching $4.99 billion, an 18.4 per cent year-on-year rise, further strengthening the external balance.

Economists have welcomed the improvement, saying the higher current-account surplus reflects stronger external resilience amid recovering domestic demand.

“External balance is on track. The current-account surplus has increased despite import growth, thanks to persistently strong remittances,” said independent economist Dr Zahid Hussain. He added that capital-goods imports have rebounded for the second consecutive month, indicating that “investment depression may have bottomed out.”

In August, capital machinery imports jumped by over 41 per cent to $750 million, suggesting renewed investment momentum in the manufacturing sector.

While the financial account remained in deficit at $528 million, it was a sharp improvement from $1.17 billion a year earlier. The capital account, meanwhile, posted a modest $9 million surplus, down more than 86 per cent year-on-year.

Thanks to these improvements, the overall balance of payments (BoP) deficit narrowed significantly to $53 million, compared to $1.43 billion in the same period last year.

With the external position strengthening, Bangladesh’s foreign-exchange reserves rose to $26.17 billion during the review period, according to central bank estimates.


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