Bangladesh's Current Account Deficit Reaches $481 Million in Q1 of FY26

Bangladesh's current account turned negative in the first quarter (July-September) of fiscal year 2025-26, marking a deficit of $481 million, compared to a surplus of $60 million in the same period last year. The widening trade deficit, primarily driven by a significant increase in imports, was the key factor contributing to the negative balance. Despite this, the overall balance of payments (BOP) recorded a surplus of $853 million, thanks to the strong performance in the financial account.

Remittance inflows saw a notable rise, reaching $7.59 billion in July-September, up from $6.54 billion last year. However, this wasn’t enough to offset the impact of the trade deficit, which grew by 23.13% to $5.71 billion during the same period. Imports surged by 10.60%, while exports increased by 5.10%. Petroleum and fertilizer imports were the main drivers of this rise.

The financial account showed a surplus exceeding $1.5 billion, bolstered by increases in trade credit and medium- to long-term loans. This contributed to the overall surplus in the BOP, highlighting a shift from the deficit recorded in the same period last year.

Experts emphasize that while the situation isn't as dire as before, concerns remain over the sustainability of this positive trend.