Bangladesh Defense
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Bangladesh's exports on negative growth trajectory for months
RMG shipment fall in major EU countries pulls down total export turnover
Published :
Feb 03, 2026 00:31
Updated :
Feb 03, 2026 00:31
Bangladesh's merchandise-export earnings during the first seven months of the current fiscal year stayed on a negative growth trajectory as main earner garment shipments to major EU countries and other destinations contracted.
Germany and France are among the major destinations in the European Union (EU) where apparel faced a setback, being undercut by big peers in their shift away from the tariff-walled United States, industry sources said, as the latest export-performance results published.
The single-month merchandise-export earnings in January 2026 for the sixth consecutive month, on a year-on-year basis, also registered negative growth compared to the same month in 2025, according to the data released Monday by Export Promotion Bureau (EPB).
Bangladesh earned US$28.41 billion during the July-January period of the fiscal year 2025-26, reflecting 1.93-percent year-on-year negative growth against $28.96 billion in the corresponding period of last fiscal.
In the just-past month, January, the country's export earnings stood at $4.41 billion which was slightly or 0.50-percent lower than the earnings worth of $4.43 billion in January 2025.
Exports went on a year-on-year negative growth in August 2025, when the country recorded a 2.93-percent fall.
The climb-down was followed by a decline of 4.61 per cent, 7.43 per cent, 5.58 per cent and 14.25 per cent in September, October, November and December respectively.
Of the total January earnings, RMG fetched $3.61 billion, logging a 1.35- percent negative growth compared to that in the same month of 2025, the EPB data revealed.
As usual, RMG maintained its leading position, contributing $22.98 billion-notwithstanding a 2.43-percent negative growth - to the total export earnings during the first seven months of the current fiscal year.
Within this clothing segment, knitwear exports fell by 3.13 per cent to $12.28 billion, while that of woven garments declined by 1.60 per cent to $10.69 billion.
Sources say while the strong performance in July reflects resilience, the slowdown since August highlights challenges for Bangladesh's export sector amid fluctuating global demand and evolving market dynamics.
Exporters, however, attribute the country's negative export growth to weakening global demand, the imposition of reciprocal tariffs by the United States and China's increased focus on markets where Bangladesh is competitive.
They also say cutthroat global competition, rising production costs, and ongoing geopolitical and trade uncertainties have created significant external pressures, contributing to the current challenges in Bangladesh's export performance.
Talking to the FE, Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said December-to-February "is usually the season of summer orders compared to that of winter and previously there had been growth during the period".
Export still was in negative territory which according to him is not good.
MA Rahim, vice chairman of DBL Group, says buyers usually hold some of their work orders before two to three months prior to the national election and they observe the situation for at least one month after election.
He expects that buyers would come back with the orders they hold temporarily or shifted to other places once a stable political situation sustains after the election.
The US tariffs have changed the overall market dimension with decline in sales there and so decrease in placing work orders, exporters say. Moreover, China and India to offset US tariff impacts are "snatching away the work orders by offering 'aggressively low rate'".
The Indian government has also incentivised with new packages to support its exporters targeting US high tariffs whereas Bangladesh government has been withdrawing the given benefits, including cuts in incentives "in the name of LDC graduation", they lament.
They, however, expect good days ahead after the national elections, saying that the situation might change with elected government provided with required and expected policy supports in consultation with businesses.
The July-January breakdowns show home-textile exports rose 3.26 per cent year on year to $509.97 million.
Leather and leather products earned $707.24 million, up 5.71 per cent.
The agricultural sector saw a 9.88-percent negative growth to $607.28 million.
Jute and jute goods exports reached $493.85 million, marking 1.97-percent growth during the period of 2025-26 fiscal.
Frozen and live fishes recorded 4.94-percent growth to fetch $297.56 million during the first seven months of fiscal 2025-26.
Pharmaceutical exports grew by 5.03 per cent to $139.10 million.
Meantime, Bangladesh's overall exports to its major billion-dollar destinations like Germany, France, Italy, Denmark, India and Japan fell 10.35 per cent, 11 per cent, 5.46 per cent, 10.40 per cent, 4.98 per cent and 2.78 per cent during the July-January period of 2025-26.
In FY25, Bangladesh exports fetched $48.28 billion, riding on $39.34 billion earnings from RMG.
Published :
Feb 03, 2026 00:31
Updated :
Feb 03, 2026 00:31
Bangladesh's merchandise-export earnings during the first seven months of the current fiscal year stayed on a negative growth trajectory as main earner garment shipments to major EU countries and other destinations contracted.
Germany and France are among the major destinations in the European Union (EU) where apparel faced a setback, being undercut by big peers in their shift away from the tariff-walled United States, industry sources said, as the latest export-performance results published.
The single-month merchandise-export earnings in January 2026 for the sixth consecutive month, on a year-on-year basis, also registered negative growth compared to the same month in 2025, according to the data released Monday by Export Promotion Bureau (EPB).
Bangladesh earned US$28.41 billion during the July-January period of the fiscal year 2025-26, reflecting 1.93-percent year-on-year negative growth against $28.96 billion in the corresponding period of last fiscal.
In the just-past month, January, the country's export earnings stood at $4.41 billion which was slightly or 0.50-percent lower than the earnings worth of $4.43 billion in January 2025.
Exports went on a year-on-year negative growth in August 2025, when the country recorded a 2.93-percent fall.
The climb-down was followed by a decline of 4.61 per cent, 7.43 per cent, 5.58 per cent and 14.25 per cent in September, October, November and December respectively.
Of the total January earnings, RMG fetched $3.61 billion, logging a 1.35- percent negative growth compared to that in the same month of 2025, the EPB data revealed.
As usual, RMG maintained its leading position, contributing $22.98 billion-notwithstanding a 2.43-percent negative growth - to the total export earnings during the first seven months of the current fiscal year.
Within this clothing segment, knitwear exports fell by 3.13 per cent to $12.28 billion, while that of woven garments declined by 1.60 per cent to $10.69 billion.
Sources say while the strong performance in July reflects resilience, the slowdown since August highlights challenges for Bangladesh's export sector amid fluctuating global demand and evolving market dynamics.
Exporters, however, attribute the country's negative export growth to weakening global demand, the imposition of reciprocal tariffs by the United States and China's increased focus on markets where Bangladesh is competitive.
They also say cutthroat global competition, rising production costs, and ongoing geopolitical and trade uncertainties have created significant external pressures, contributing to the current challenges in Bangladesh's export performance.
Talking to the FE, Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said December-to-February "is usually the season of summer orders compared to that of winter and previously there had been growth during the period".
Export still was in negative territory which according to him is not good.
MA Rahim, vice chairman of DBL Group, says buyers usually hold some of their work orders before two to three months prior to the national election and they observe the situation for at least one month after election.
He expects that buyers would come back with the orders they hold temporarily or shifted to other places once a stable political situation sustains after the election.
The US tariffs have changed the overall market dimension with decline in sales there and so decrease in placing work orders, exporters say. Moreover, China and India to offset US tariff impacts are "snatching away the work orders by offering 'aggressively low rate'".
The Indian government has also incentivised with new packages to support its exporters targeting US high tariffs whereas Bangladesh government has been withdrawing the given benefits, including cuts in incentives "in the name of LDC graduation", they lament.
They, however, expect good days ahead after the national elections, saying that the situation might change with elected government provided with required and expected policy supports in consultation with businesses.
The July-January breakdowns show home-textile exports rose 3.26 per cent year on year to $509.97 million.
Leather and leather products earned $707.24 million, up 5.71 per cent.
The agricultural sector saw a 9.88-percent negative growth to $607.28 million.
Jute and jute goods exports reached $493.85 million, marking 1.97-percent growth during the period of 2025-26 fiscal.
Frozen and live fishes recorded 4.94-percent growth to fetch $297.56 million during the first seven months of fiscal 2025-26.
Pharmaceutical exports grew by 5.03 per cent to $139.10 million.
Meantime, Bangladesh's overall exports to its major billion-dollar destinations like Germany, France, Italy, Denmark, India and Japan fell 10.35 per cent, 11 per cent, 5.46 per cent, 10.40 per cent, 4.98 per cent and 2.78 per cent during the July-January period of 2025-26.
In FY25, Bangladesh exports fetched $48.28 billion, riding on $39.34 billion earnings from RMG.
