BD Trade to GDP Ratio Declining

Bangladesh has formed a national committee, led by the commerce adviser and Beza’s executive chairman, to evaluate the feasibility of establishing Free Trade Zones (FTZs), as announced on April 21, 2025. This move follows the Bangladesh Investment Summit (April 7–10), where attracting foreign investment, boosting exports, and creating jobs were key topics.

Bangladesh's upcoming national budget for FY 2025-26 is likely to be Tk 7.92 trillion, slightly lower than the current year's Tk 7.97 trillion, marking the first time the country will frame a smaller budget year-on-year. This downsizing reflects poor revenue performance, foreign aid shortfalls, and sluggish budget implementation.

Bangladesh and the European Union (EU) held the first round of negotiations on the Partnership and Cooperation Agreement (PCA) on April 10, 2025, in Brussels, aiming to finalize the agreement by 2026. The PCA seeks to establish a comprehensive framework for enhancing cooperation in areas like trade, investment, climate action, digital transformation, migration, human rights, and security.

The Asian Development Bank (ADB) revised Bangladesh's GDP growth forecast for FY2025 to 3.9%, down from 4.3%, citing four key risks: US tariffs, political uncertainty, high inflation, and natural disasters. Inflation is projected to average 10.2% in FY2025, easing to 8% in FY2026.

UK Trade Envoy to Bangladesh, Baroness Rosie Winterton, emphasized the UK's commitment to deepening economic ties with Bangladesh during her first official visit. Highlighting the UK's role as Bangladesh's third-largest export market for ready-made garments and a top foreign investor, she stressed the goal of enhancing bilateral trade and investment.

The government has proposed a Tk 8,00,000 crore budget for FY 2025-26, targeting 6% GDP growth and 6.5% inflation. The development budget is projected between Tk 2,30,000 crore and Tk 2,40,000 crore, with a revenue target of Tk 5,85,000 crore.