Current account deficit has widened in the early months of the fiscal year, as import payments continue to grow faster than export earnings, putting pressure on the country’s external finances.

According to data released by Bangladesh Bank on Wednesday, the gap between foreign currency inflows and outflows reached $749m during July–October of fiscal year 2025–26. This represents a 17% increase from a $640m deficit recorded in the same period a year earlier.

The current account tracks trade in goods and services, income from overseas investments, remittances, and foreign aid. A deficit occurs when imports and other outflows exceed receipts.

A senior central bank official said import payments have risen for several reasons, including stronger demand ahead of Ramadan.

Over the four-month period, imports increased 5.5% year on year to $22.11bn, up from $20.95bn previously. Export earnings, however, rose by only 1.8% to $14.54bn.

As a result, the trade deficit widened to $7.57bn, compared with $6.68bn a year earlier.

Industry insiders warned that imports could rise further after the upcoming election, putting additional strain on foreign currency reserves. They stressed the need to boost exports and remittance inflows.

There was some relief from financial inflows. The financial account recorded a surplus of $2.17bn during July–October, reversing a deficit a year earlier. Net foreign direct investment also rose to $445m.