Q1 2022 Trade and Contract Awards at a Glance
The first quarter of 2022 opened on a solid footing, extending the momentum from the previous year. Bilateral trade reached USD 520 million, up 8.2% year on year, while the overseas construction segment secured USD 120 million in new contracts. Bangladesh maintained GDP growth of 7.1%, sustaining demand for infrastructure investment and widening the opportunity set for Korean companies.
Trade by Product Category
The most notable change in the export mix was the continued growth of ICT components. Shipments rose from USD 18 million in the previous quarter to USD 22 million, an increase of 22%, making ICT the second-largest export item after textile machinery (USD 40 million). This trend is directly linked to expanded IT infrastructure investment under Bangladesh's Digital Bangladesh agenda.
| Type | Item | Value | vs. Previous Quarter | Key Note |
|---|---|---|---|---|
| Export | Textile Machinery | $40M | +5.3% | Rising demand for automation equipment |
| Export | ICT Components | $22M | +22.2% | Benefiting from Digital Bangladesh |
| Export | Steel Products | $32M | -8.6% | Affected by global price volatility |
| Export | Chemical Products | $25M | +10.7% | Fertilizer and plastic feedstocks |
| Import | Garments | $285M | +6.2% | European orders recovering |
| Import | Seafood | $35M | +3.0% | Centered on frozen shrimp |
| Import | Leather and Footwear | $22M | +12.0% | Higher share of value-added products |
Construction Award Trends
Both new contracts signed in the quarter were Bangladesh government-led projects. They included a 150MW combined-cycle power plant in Barisal valued at USD 75 million and the northern Dhaka ring road expansion worth USD 45 million. Progress on Metro Rail Line 6, already under execution, also improved from 35% to 42%.
Early Risk Signals
Macro indicators remained broadly stable through Q1, but several early warning signs had already emerged. Foreign exchange reserves declined from USD 44.8 billion to USD 42.1 billion, while energy import payments surged 38% from a year earlier, widening the current account deficit. These developments foreshadowed the FX pressure that would become more visible from Q2 onward.