STAR BUSINESS REPORT

Bangladesh’s trade deficit narrowed by $290 million, or around 10 percent, in the first two months of the current fiscal year compared to the same period of the previous fiscal year.

During the July-August period of FY25, the trade deficit was $2.75 billion, according to the latest data from the central bank.

It was $3.04 billion in the same period of FY24.

The narrowing of the trade deficit was attributed to a rise in export earnings coupled with a decline in import expenditure.

Export earnings increased by 2.5 percent year-on-year to $7.16 billion in the two months of this fiscal year.

Import costs fell 1.2 percent year-on-year to $9.91 billion.

Another significant development in the balance of payments came about in the country’s current account, which is now in the positive, supported by increased remittance inflows over the last two months.

The balance of payments summarises the economic transactions of an economy with the rest of the world.