Bangladesh’s current account balance turned positive in August 2024, marking a surplus of $111 million for the July-August period of the fiscal year (FY) 2024-25. This shift followed months of deficits and was driven by lower import costs and increased remittances, according to Bangladesh Bank data. The previous fiscal year saw a deficit of $610 million for the same period.
During July-August 2024, the trade gap narrowed by 9% to $2.75 billion, with import expenses dropping by 1.2% and export earnings growing by 2.5%. Remittances rose significantly, reaching $4.14 billion, a 15.8% increase compared to the same period last year. A BB official attributed the positive current account balance to higher remittances and reduced imports.
However, experts caution that maintaining this surplus may be challenging as imports are expected to rise, especially with a stable political environment. The financial account deficit also improved, narrowing to $145 million, though the overall balance of payments saw a decrease to $1.4 billion.
Economists like Mustafa K Mujeri and Zahid Hussain emphasize the need for export diversification to ease external pressures and express concern over the financial account. The mass protests that led to the fall of the Sheikh Hasina government in August disrupted imports, contributing to lower import expenditures. Post-regime change, renewed optimism among migrant workers may have boosted remittance flows.
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