STAR BUSINESS REPORT

The current account balance, which records the country’s transactions with the rest of the world, has slipped back into deficit, signalling renewed pressure on the external economy.

During the July-September period of the current fiscal year, the current account posted a deficit of $481 million, compared with a $60 million surplus in the same period last year, according to the latest data from the Bangladesh Bank.

The current account captures the net flow of funds into and out of the country, including payments for goods and services, income earned from overseas investments, and foreign aid.

When imports exceed exports, or when outgoing payments for investment and aid are higher than incoming receipts, the account moves into deficit.

“Import payments are rising ahead of the upcoming Ramadan, contributing to the negative balance,” said Mohammad Akhtar Hossain, chief economist of the Bangladesh Bank.

He said that short-term fluctuations in the current account are not a cause for concern, as the deficit is unlikely to continue over the longer term.

During the July-September period, import payments increased 10.6 percent year-on-year to $16.80 billion, up from $15.19 billion, while export earnings grew only 5.1 percent to $11.08 billion, according to BB data.

Md Deen Islam, associate professor of economics at Dhaka University, told The Daily Star that the deficit may widen in the coming months as imports continue to rise, while exports show no clear upward trend.

He said that global prices of essential commodities are stable for now, but any future increase would push import costs higher.

“Export growth should be increased by diversifying into new markets and products,” Islam said.

He also said that Bangladesh should take measures to increase remittance inflows, which would help the country withstand potential external shocks.

The trade deficit, the difference between import and export payments, widened to $5.71 billion during the first three months of FY26, up from $4.63 billion in the same period last year.

Meanwhile, the financial account, another key part of the balance of payments, returned to surplus.

This account tracks cross-border flows related to investments, loans, aid, and other financial transactions, including foreign direct investment, medium and long-term loans, trade credit, portfolio investment, and changes in reserve assets.

In the July-September period of FY26, the financial account recorded a surplus of $1.59 billion, compared with a $1 billion deficit a year earlier. During July and August alone, it had registered a $525 million deficit.

Net foreign direct investment rose to $318 million from $114 million, according to the balance of payments data.

In the first quarter of FY26, the overall balance of payments showed a surplus of $853 million, reversing a $1.48 billion deficit recorded in the same period last year.