7 key developments of economy last week

Bangladesh’s economy last week was marked by a drop in export earnings, pressure on exports, and record remittance inflows.

Supply disruptions, external shocks from geopolitical tensions, and evolving trade and financial dynamics capped an eventful week.

The following is a recap of the major stories as covered by Star Business:

Export earnings fall for eighth straight month (April 3)

Bangladesh registered another month of decline in exports in March, according to Export Promotion Bureau (EPB) data. Merchandise export earnings dropped 18 percent year-on-year (YoY) to $3.48 billion. The fall, caused largely by long Eid holidays and turmoil in the global economy, was driven by garment exports.

War pain spreading fast across industries (April 3)

The impact of the ongoing war spread rapidly across multiple industries, raising costs and disrupting supply chains. Businesses reported declining demand and operational challenges, signalling broader economic stress as global uncertainties increasingly affect domestic production and trade activities.

Remittance hits all-time high of $3.75b (April 2)

Remittance inflows reached a record $3.75 billion, providing strong support to the country’s foreign exchange reserves. The surge was driven by increased transfers through formal channels, offering relief amid external sector pressures and helping stabilize the overall balance of payments.

LDC graduation could cost Bangladesh $17.5b in exports: UNCTAD (April 1)

The UN Conference on Trade and Development warned that Bangladesh could lose $17.5 billion in exports following its graduation from the least developed country category. The loss of preferential trade benefits may reduce competitiveness in major markets, posing challenges for export diversification and long-term growth sustainability.

WTO conference concludes without major agreements (March 31)

The latest World Trade Organization conference ended without significant breakthroughs on key trade issues. Member states failed to reach consensus on several critical areas, highlighting ongoing divisions and uncertainty in the global trading system, which may affect developing countries like Bangladesh.

Food exports to the Gulf feel war shock (March 30)

Bangladesh’s food exports to Gulf countries were hit by disruptions stemming from the ongoing US-Israel war on Iran, affecting shipment schedules and demand. Exporters reported order cancellations and logistical challenges, raising concerns over earnings from a key market already sensitive to geopolitical instability.

Fuel queues pushing up transport costs (March 29)

Persistent fuel shortages led to long queues at filling stations, disrupting transport operations and raising freight costs. Truckers faced delays and reduced trips, increasing expenses that were passed on to goods prices, adding pressure to supply chains and contributing to overall inflationary trends.