The country’s readymade garment exports to major global destinations maintained a downward trend in the July-February period of the current financial year 2025-26 due to weak global demand and local challenges.
According to detailed country-wise export data from the Export Promotion Bureau, Bangladesh exported RMG items worth $25.8 billion in the July-February period of FY26, marking a 3.73 per cent decline from that of $26.80 billion earned in the same period of FY25.
In February 2026, export earnings from RMG stood at $2.81 billion — a deep 13.21 per cent decline from those of $3.24 billion in February 2025, maintaining a negative growth for the seventh straight month.
Exporters said that shipments had continued to decline due to weak global demand, fewer buyer inquiries and intense competition, particularly on European markets.
However, they expressed further worries following the conflict in the Middle East, which could negatively impact the global economy again.
Regarding export decline, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that exports declined by 12 per cent, despite earlier projections anticipating a sharper fall.
‘We have already secured orders for the next three months, but there are no projections for growth during this period,’ he added.
He also expressed concern over the ongoing Middle East crisis, warning that if the US-Israel-Iran conflict prolonged, it would significantly affect the country’s exports.
‘We witnessed the global economic turmoil during the Covid-19 pandemic and the Russia-Ukraine war. Entering a new war might again create volatility in the global economy, which would have a direct impact on purchase orders,’ he added.
He also said that the businesses expected that orders would have increased after the national election, but, unfortunately, orders started declining due to the war, as some buyers had announced to slow down recently.
During the first eight months of FY26, knitwear exports declined by 4.56 per cent to $13.69 billion, while woven garment exports fell by 2.79 per cent to $12.1 billion.
In the period, the downturn was more pronounced in the United States, European Union, non-traditional markets and other destinations, although shipments to the United Kingdom and Canada narrowly avoided negative growth.
During July-February of FY26, Bangladeshi exporters recorded a 5.49 per cent decline in shipments to the EU — the largest destination for Bangladesh’s apparel exports — to $12.69 billion, down from that of $13.42 billion in the same period of FY25.
Export earnings from the EU accounted for more than 49 per cent of Bangladesh’s total RMG export revenues during the period.
Exports to major EU countries such as Germany, France, Denmark and Italy declined in the first eight months of FY26, although narrow to moderate growth was recorded in Spain, the Netherlands and Poland.
Export earnings from the United States continued to decline, with negative growth of 0.74 per cent to $5.03 billion in July-February of FY26, compared with that of $5.07 billion in the same period of FY25.
The US, the largest single-country destination for Bangladeshi apparel, accounted for 19.5 per cent of the total RMG export earnings, according to EPB data compiled by the Bangladesh Apparel Exchange, a private initiative promoting the country’s apparel and textile industry.
RMG exports to the UK grew narrowly by 1.22 per cent to $3 billion in the first eight months of FY26, up from $2.93 billion in the same period of FY25.
From Canada, RMG exporters bagged $872 million during the reporting period, up 3.08 per cent from $846 million in the corresponding period of the previous financial year.
Among major EU markets, exports to Germany declined by 12.2 per cent to $2.97 billion in the July-February period, compared with that of $3.38 billion in the same period of FY25, EPB data showed.
In the first eight months of FY26, exports to France fell by 11.30 per cent to $1.27 billion from $1.44 billion, while exports to Italy declined by 8.06 per cent to $970 million from $1.05 billion during the same period.
However, exports to Spain stood at $2.42 billion, while shipments to the Netherlands and Poland amounted to $1.43 billion and $1.21 billion respectively — all of which posted narrow-to-moderate growth in the July-February period of FY26.
In the apparel trade, the US, Canada, the UK and the EU are considered traditional markets, while other destinations are classified as non-traditional.
Major non-traditional markets include Japan, Australia, Russia, India, China, South Korea, the United Arab Emirates, Malaysia, Brazil and Mexico.
Despite hope, export earnings from non-traditional markets have declined since October.
During July-February of FY26, exports to non-traditional destinations further fell by 6.34 per cent to $4.24 billion, compared with those of $4.52 billion in the same period of FY25.
Non-traditional markets accounted for 16.44 per cent of Bangladesh’s total RMG exports during the period.
Among major non-traditional markets, exports to Japan declined by 5.38 per cent to $794 million in the July-February period of FY26, down from $839 million in the same period of FY25.
Exports to Australia plunged by 12.68 per cent to $508 million, while shipments to India declined by 9.74 per cent to $531 million. Exports to Mexico fell sharply by 16.82 per cent to $191 million, the EPB data showed.
Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association, said that the global demand had weakened significantly, while Bangladesh’s continued emphasis on basic, low-priced products had constrained its pricing flexibility.
‘Due to weak international demand, the exports have been on a negative trend for the past several months,’ he added, saying that the political situation, the election, and some unwanted protests at the port also impacted the exports.
However, he expressed worry that the recent conflict that broke out in the Middle East, following the US and Israel’s attack on Iran, could destabilise the global market again.
‘We were hopeful that after a new government was sworn in, we could regain stability. Domestic stability might be restored soon, but global turmoil would again impact exports,’ he added.
Regarding non-traditional markets, he said that Bangladesh was lagging behind due to a lack of innovation, research and development and technology adoption.
‘Because, we label them as non-traditional, but Vietnam considers Japan as one of their major destinations, which impacted our exports,’ he added, saying that Bangladesh still focused on the EU and US, urging market diversification.
In FY25, the RMG sector earned $39.35 billion from global markets.
