Remittance growth reduces current account deficit, overall transaction surplus

According to Bangladesh Bank’s December report, imports rose 5 percent to $3,386 crore, while export revenue fell nearly 1 percent to $2,212 crore, increasing the trade deficit to $1,155 crore, compared to $957 crore in the same period last year.

However, remittances grew 18 percent, reducing the current account deficit to $34 crore from $52 crore in the previous year. Additionally, foreign direct investment and foreign loan inflows added $205 crore to financial balances, resulting in an overall surplus of approximately $199 crore.

Foreign exchange reserves also increased positively, recently surpassing $34 billion—the highest in 38 months. Economists noted that strong remittance inflows and financial balances help stabilize foreign transactions, though balancing imports and exports remains a major challenge.