Bangladesh’s imports surged to a three-year high in July, reflecting a rebound in industrial demand following the easing of restrictions imposed during the country’s dollar crisis.

Import payments rose to $6.2bn, up 19.5% from a year earlier, according to Bangladesh Bank data compiled from the National Board of Revenue. The figure is close to the $6.3bn recorded in July 2023, before political unrest and policy curbs suppressed trade.

Business leaders say the sharp rise partly reflects a low base effect, as imports were disrupted in July last year during mass protests against the Sheikh Hasina-led government. They attribute the recovery to resumed business activity and relaxed import controls.

The latest increase was driven by higher imports of intermediate goods, particularly inputs for the ready-made garment sector, as well as iron, steel, base metals and capital machinery. Imports of capital machinery jumped 71% year-on-year to $456m, while RMG-related inputs rose 10.3% to $1.52bn.

Analysts caution that the data signals stabilisation rather than robust growth. Credit to the private sector grew just 6.52% in July, one of the lowest rates in 18 months, highlighting weak investment appetite.

Economists also point to continued challenges, including high inflation, fragile power supply, and structural bottlenecks in energy and infrastructure.

Still, the rebound in capital machinery and industrial inputs is seen as a positive sign. Industry leaders say it marks the beginning of recovery from two years of restricted trade and political disruptions.