Bangladesh’s current account deficit narrows in 6 months

NN Online:

Bangladesh’s trade deficit has significantly decreased, with the current account posting a surplus in the first half of the fiscal year 2024-25, according to data released by Bangladesh Bank (BB).

Bangladesh’s trade deficit has significantly narrowed, with the current account recording a surplus in the first six months of the ongoing fiscal year 2024-25, according to data from Bangladesh Bank (BB).

The central bank’s updated balance of trade report reveals that the deficit in goods trade stood at $2.764 billion between July and December of FY 2024-25, which marks a significant improvement compared to the $10.876 billion deficit recorded during the same period in FY 2023-24.

The latest data indicates a notable turnaround in the country’s trade performance, reflecting a steady improvement in external transactions.

The previous fiscal year, FY 2023-24, ended with a substantial current account deficit of $6.51 billion. Despite beginning FY 2024-25 in deficit, the financial account has now swung into surplus.

Between July and December 2024, the financial account recorded a surplus of $1.38 billion. This marks a sharp contrast to the situation in November 2024, when the financial account posted a deficit of $0.56 billion.

Economic Analyst Dr M Masrur Reaz attributes this positive shift to Bangladesh’s gradual economic recovery, aided by efforts to curb corruption in various sectors. He emphasised that the banking sector remains a crucial component in restoring momentum to the economy.

“Despite challenges such as corruption and data discrepancies, the financial sector continues to expand,” Dr Reaz noted.

This trend suggests that Bangladesh’s economy is on a path to stability, with strengthened financial inflows contributing to a more favourable outlook for the coming months, he added.