Bangladesh’s import activity declined in November 2024, reflecting ongoing challenges in the private sector and broader economic uncertainty. Official data indicates that import volumes, measured through the opening of letters of credit (LCs), fell to $5.27 billion in November, down from $5.6 billion in the same month of 2023.
For the July-November period of the fiscal year, the total value of LCs opened for imports declined marginally by less than 1%, amounting to $27.97 billion. Similarly, LC settlements, which reflect actual payments for imports, dropped by over 1%, settling at $27.88 billion, according to Bangladesh Bank data.
Sluggish private-sector credit growth, political unrest, economic challenges have dented imports growth. While overall import volumes have declined, the impact has been uneven across different sectors.
Capital machinery imports fell sharply by 29% to $690 million during the July-November period. Imports of immediate goods dropped by over 12%, amounting to $1.69 billion, indicating reduced manufacturing activity. Consumer goods imports declined by more than 3.34% to $2.6 billion, likely due to subdued consumer demand.
In contrast, imports of industrial raw materials increased by 4.8%, reaching $9.8 billion, signaling a potential recovery in the manufacturing sector.
Economic Implications
Dr. M Masrur Reaz, founder and chairman of Policy Exchange of Bangladesh, expressed cautious optimism about the situation. “We expect imports to pick up as the foreign exchange market stabilizes gradually,” he said. With the government removing taxes on essential goods and Ramadan, a peak consumption period, approaching, there is hope for a rebound in import activity.
