July trade deficit jumps 38% as imports rise and export earnings fall
Bangladesh has begun the 2026-27 financial year with a large trade deficit, continuing the trend from the previous fiscal year.
The deficit stood at $2.09 billion in July, 38.37 percent higher than in the same month a year earlier.
The trade deficit was $1.51 billion in July 2025, the first month of FY2026.
Analysts attribute the widening deficit to lower export earnings amid different constraints and higher import costs.
With two and a half months of the current fiscal year nearing completion, Bangladesh Bank on Tuesday released balance of payments data for July, the first month of FY2027.
The data show that goods worth $6.44 billion were imported in July, up 8.6 percent from the same period last fiscal year. Imports stood at $5.93 billion in July 2025.
In contrast, exporters earned $4.35 billion from goods exports in July, down 1.6 percent from a year earlier. Export earnings were $4.42 billion in July 2025.
This left the overall goods trade deficit at $2.09 billion in July.
The previous fiscal year ended with a massive $27.29 billion trade deficit, nearly 34 percent higher than the year before and the third-highest in Bangladesh’s history.
Current Account Starts in Surplus
Despite the widening trade deficit, the new fiscal year began with a surplus in the balance of payments current account. The key economic indicator posted a $64 million surplus in July.
The current account had a $125 million surplus in July 2025, but FY2026 ended with a $1.59 billion deficit. The deficit was $138 million in FY2025.
Financial Account in Deficit
Despite the current account surplus, the financial account recorded a $677 million deficit in July. FY2026, however, ended with a large surplus of nearly $8 billion.
The financial account had ended FY2025 with a $3.59 billion surplus and FY2024 with a $4.54 billion surplus.
Overall Balance also in Deficit
The first month of the new fiscal year also began with a deficit in the overall balance, which stood at $633 million.
FY2026 ended with a large $6.6 billion surplus, while FY2025 ended with a $3.39 billion surplus. FY2024 ended with a massive $4.3 billion deficit.
FDI Falls
Bangladesh received $116 million in net foreign direct investment (FDI) in July, 5 percent less than in July last year.
Net FDI stood at $1.47 billion in FY2026, down 15 percent from $1.72 billion in FY2025.
