Bangladesh’s imports grew 3.53% YoY to $32 billion in H1 FY25, rebounding from a 20% decline the previous year, driven by higher exports and remittances. December 2024 saw a 30% YoY surge in imports, supported by increased industrial raw material demand for export-oriented industries. The Bangladesh Bank had previously imposed import restrictions due to a foreign exchange crisis caused by soaring global prices post-Russia-Ukraine war. However, rising exports (12% YoY in July-January FY25) and remittance inflows eased restrictions on LC openings and settlements, sustaining import growth into January. Despite this, capital machinery LC openings fell 33% in July-January FY25, signaling sluggish investment. Higher food grain imports for Ramadan also contributed to the rebound. Economists see this as a sign of economic recovery, boosting GDP growth, employment, and trade activity, though they stress the need for reserve management and financial sector stability to ensure long-term sustainability.
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