Bangladesh: Economic and Political Overview
Trade represents only 34% of Bangladeshi GDP (World Bank, latest data available). According to government data, ready-made garments comprise the majority of exports, followed by jute, shrimps and prawns, and footwear; whereas imports are led by Iron & steel, edible oil, fertilizers, and petroleum products.
The country's main export partners are the U.S. (19.8%), Germany (14.4%), the UK (9.1%), Spain (6%), and France (5.1%). Imports come chiefly from China (21.3%), India (17%), Singapore (8%), Indonesia (5%), and Malaysia (3.9% - data NBS). The country acts as a passageway between the center of India and its Eastern provinces. Customs duties in Bangladesh are relatively high; however, the country is implementing a series of measures to reduce its trade barriers, including concessional tariffs, a customs duty recovery system, export processing zones, as well as high-level negotiations with key countries. Bangladesh has benefited from more simplified procedures and regulations to export its products to the European Union as an LDC (least developed country).
Since becoming independent, Bangladesh has had a negative trade balance, with its deficit being financed by international aid and expatriate transfers. In 2022, exports of goods from Bangladesh increased to USD 54.7 billion (from 44.2 billion the previous year) and imports of goods increased to USD 88.2 billion (from 80.4 billion in 2021 – data WTO). With regards to services, the imports for 2022 were USD 12.1 billion, while the exports were USD 8.2 billion. The World Bank estimated the country’s trade deficit at 8% of its GDP (from 6.4% one year earlier). In the first half of the 2023-24 fiscal year (July 2023-June 2024), Bangladesh's total exports increased by 0.84% year on year to USD 27.54 billion, as per the latest official data. Meanwhile, imports fell by 18.19% year on year to USD 33.68 billion during the same period.
Foreign Trade Values | 2019 | 2020 | 2021 | 2022 | 2023 |
Imports of Goods (million USD) | 59,094 | 52,804 | 80,448 | 88,234 | 66,863 |
Exports of Goods (million USD) | 39,337 | 33,605 | 44,223 | 54,695 | 55,788 |
Imports of Services (million USD) | 9,558 | 7,927 | 10,866 | 12,190 | 10,713 |
Exports of Services (million USD) | 6,214 | 6,020 | 7,475 | 8,234 | 6,095 |
Source: World Trade Organisation (WTO) ; Latest available data
Foreign Trade Indicators | 2018 | 2019 | 2020 | 2021 | 2022 |
Foreign Trade (in % of GDP) | 32.5 | 31.6 | 26.3 | 27.7 | 33.8 |
Trade Balance (million USD) | -17,284 | -15,929 | -16,394 | -32,617 | -29,792 |
Trade Balance (Including Service) (million USD) | -21,457 | -19,273 | -18,300 | -36,008 | -33,677 |
Imports of Goods and Services (Annual % Change) | 23.9 | 0.5 | -11.4 | 15.3 | 31.2 |
Exports of Goods and Services (Annual % Change) | 6.1 | 11.5 | -17.5 | 9.2 | 29.4 |
Imports of Goods and Services (in % of GDP) | 19.8 | 18.5 | 15.8 | 17.1 | 20.9 |
Exports of Goods and Services (in % of GDP) | 12.7 | 13.1 | 10.4 | 10.7 | 12.9 |
Source: World Bank ; Latest available data
Foreign Trade Forecasts | 2023 | 2024 (e) | 2025 (e) | 2026 (e) | 2027 (e) |
---|---|---|---|---|---|
Volume of exports of goods and services (Annual % change) | 5.0 | 3.9 | 7.8 | 8.2 | 8.8 |
Volume of imports of goods and services (Annual % change) | -11.5 | 4.1 | 18.0 | 9.6 | 9.0 |
Source: IMF, World Economic Outlook ; Latest available data
Note: (e) Estimated Data
To go further, check out our service Import-Export Flows.
5.9 bn USD of services exported in 2023 | |
31.80% | |
19.60% | |
13.08% | |
12.42% | |
10.77% | |
7.68% | |
Personal travelPersonal travel | 7.66% |
OtherOther | 79.25% |
Business travelBusiness travel | 0.02% |
3.09% | |
0.88% | |
0.66% | |
0.04% |
11.0 bn USD of services imported in 2023 | |
61.28% | |
15.32% | |
Personal travelPersonal travel | 14.92% |
OtherOther | 23.40% |
Business travelBusiness travel | 0.39% |
7.96% | |
6.82% | |
3.76% | |
2.64% | |
1.23% | |
0.42% | |
0.37% | |
0.19% |
Source: United Nations Statistics Division, 2024. Because of rounding, the sum of the percentages may be smaller/greater than 100%.
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Latest Update: October 2024