Bangladesh Sees 7.1% Year-on-Year Growth in June; FY2024-25 Remittance Jumps by 26.5% to $30 Billion

Bangladesh has witnessed a notable surge in remittance inflows, receiving $2.54 billion from expatriates in just the first 28 days of June 2025. According to the latest data released by Bangladesh Bank on Sunday (June 29), this marks a 7.1% year-on-year increase compared to the $2.37 billion received during the same period in June 2024.

The central bank also reported significant year-on-year growth in total remittance inflow for the current fiscal year. From July 2024 to June 28, 2025, Bangladeshi expatriates have sent home a total of $30 billion in remittance, a dramatic 26.5% rise from $23.75 billion received during the same period in the previous fiscal year.

This substantial increase comes at a time when remittance has become a key lifeline for Bangladesh’s economy, helping stabilize foreign exchange reserves and supporting household consumption in rural and semi-urban areas.

Economic analysts have credited the surge to multiple factors, including policy support from the government, streamlined digital transfer mechanisms, and attractive incentives for legal remittance channels. In recent months, the central bank and relevant government agencies have been promoting formal remittance transfers through banking channels, discouraging the use of illegal hundi systems.

Remittance has historically played a vital role in strengthening Bangladesh’s economy, contributing significantly to GDP and acting as a buffer against trade imbalances. With over 10 million Bangladeshis living and working abroad, particularly in the Middle East, Southeast Asia, Europe, and North America, these funds are critical to millions of families back home.

The government has maintained a 2.5% cash incentive on remittance sent through legal channels, which, alongside favorable exchange rates and enhanced mobile banking accessibility, is believed to have contributed to this year’s growth.

Economists have noted that the sharp increase in remittance inflow is a positive sign amid global economic uncertainties. It is also expected to ease pressure on Bangladesh’s current account balance and strengthen the country’s foreign currency reserves, which have been under strain due to rising import bills and external debt obligations.

Policy-makers are hopeful that this upward trend will continue into the next fiscal year, especially if labor migration remains steady and the global demand for Bangladeshi workers sustains its momentum. They also stress the importance of continued investment in migrant worker training and protection, ensuring their contribution to the economy remains strong and secure.

In conclusion, the robust performance of remittance in both June and the entire fiscal year reflects the resilience and commitment of Bangladeshi expatriates, reinforcing the need for continued policy focus and appreciation of their vital role in the nation’s economic stability.