Bangladesh Records 18.3% Surge in Remittance Inflow in Early December

Significant Growth in Early December

Bangladesh has registered a notable increase in its remittance inflow, with a year-on-year growth of 18.3 percent in the first 10 days of December 2025. The country received approximately US$1290 million during this period, according to the latest data released by the Bangladesh Bank (BB). This figure represents a substantial rise compared to the US$1091 million received in the corresponding period last year.

The positive trend extends to the current fiscal year, with cumulative remittance inflows from July 1 to December 10, 2025, totaling approximately US$14,329 million. This marks a significant increase from the US$12,228 million recorded during the same period of the previous fiscal year, underscoring the resilience and growing economic contribution of remittances amidst global economic fluctuations.

Factors Driving the Increase

Several factors are believed to be contributing to this sustained upward trajectory in remittance inflows. Officials and experts attribute the growth to a combination of strategic initiatives and market dynamics. These include:

• Incentives for Formal Channels: Government incentives and stronger encouragement for expatriates to send money through legal banking channels have proven effective.
• Crackdown on Informal Networks: A concerted crackdown on money laundering and informal 'hundi' networks has redirected funds towards official banking systems.
• Market-Based Exchange Rates: The narrowing gap between official and informal exchange rates, coupled with a return to a market-based exchange rate, has made formal channels more attractive.
• Increased Manpower Exports: A satisfactory trend in overseas employment, with Bangladesh sending over 1 million workers abroad from January to November 2025, has boosted remittance earnings.
• Improved Infrastructure: Enhanced banking infrastructure and digital remittance services have facilitated easier and safer transfers for overseas workers.

Economic Significance and Outlook

Remittances are a vital component of Bangladesh's economy, serving as a significant source of foreign exchange and playing a crucial role in stabilizing the national economy. These inflows contribute approximately 6-7 percent to the country's Gross Domestic Product (GDP) and are instrumental in reducing poverty, enhancing household incomes, and stimulating local markets through increased consumption.

The consistent flow of remittances strengthens the nation's foreign currency reserves, enabling Bangladesh to meet its import needs and maintain currency stability. Economists often highlight remittances as the second-largest sector for foreign currency earnings after the garment industry, particularly when considering the cost of imported raw materials for the latter. The continued robust growth in remittance inflows is seen as a positive indicator for Bangladesh's economic recovery and stability, fostering confidence among both domestic and international stakeholders.