Bangladesh: Trade deficit widens to $17 billion amid weak exports and rising import pressure

Bangladesh Trade Deficit Rises to $17 Billion Due to Weak Exports and Rising Imports

Bangladesh is struggling with a growing trade deficit of $17 billion between July 2025 and February 2026. This increase, compared to last year, is caused by higher imports and lower export earnings. The country’s ability to maintain its economic recovery is now in question.

Exports dropped by 2.6% to $29.26 billion, mainly because the ready-made garments industry—which usually drives Bangladesh’s exports—is performing poorly. Experts say this weakness shows long-term problems rather than temporary issues. Imports rose by 5.6% to $46.17 billion, driven by higher global prices for food, fuel, and essential goods.

The increase in import costs highlights how much Bangladesh relies on foreign markets, making it vulnerable to global economic changes and political uncertainties. However, the current account deficit improved slightly to around $1 billion due to a 21% rise in remittance inflows from abroad. Despite this improvement, experts warn that relying too much on remittances to balance trade is not a long-term solution.