Bangladesh’s financial account surplus exceeded $1 billion in the first four months of FY25, reversing last year’s deficit of $873 million, thanks to increased repatriation of overdue export payments and a sharp drop in the trade credit deficit. The trade deficit also shrank by 11.72%, supported by 8.3% export growth and a modest 1% rise in imports. However, FDI fell by 19.8%, and medium- to long-term loan inflows dropped by 35%, reflecting ongoing investment challenges and reduced foreign financing. The current account deficit narrowed by 76%, primarily due to a 30% increase in remittance inflows, which reached $8.94 billion, reducing pressure on foreign exchange reserves. Despite these positive trends, a significant $2.14 billion “Errors and Omissions” figure raises concerns about potential unrecorded financial outflows, including money laundering and trade misvaluation. Economists stress the importance of addressing these issues to safeguard economic stability.
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