Exports from readymade garments have been facing growing headwinds from trade policy shifts and global demand fluctuations in the first quarter of the current financial year 2025-26, which have slowed export growth, according to Bangladesh Bank data.
The central bank stated that the sector would step into the rest of FY26 amid challenges shaped not only by demand dynamics in key markets but also by geopolitical and trade risks, such as new high US tariffs and related trade tensions, which might create uncertainty regarding order flows and place pressure on competitiveness.
According to the BB’s Quarterly Review of Readymade Garments, Bangladesh’s RMG sector earned $9.93 billion, recording a year-on-year growth of 4.34 per cent, in the July-September period of FY26, higher than that of $9.51 billion earned in the same period of FY25.
The earnings in the reporting period were 8.88 per cent higher than that of $9.11 billion recorded in the preceding quarter, April-June period, of the FY25.
During the first quarter of FY26, import value of raw materials, like raw cotton, synthetic or viscose fibre, synthetic or mixed yarn, cotton yarn, textile fabrics and accessories for garments was $3.84 billion, accounting for 38.66 per cent of total RMG export earnings.
In other words, the net exports from this sector amounted to $6.08 billion, or 61.34 per cent of total RMG exports, in the July-September quarter of FY26.
The net exports were 17.62 per cent higher than those of the preceding quarter (April-June of FY25), which were $5.18 billion, and 8.37 per cent higher than those of the same quarter of the previous fiscal year, which were $5.62 billion, the central bank data stated.
During July-September of FY26, Bangladesh’s RMG exports were primarily directed to nine major destinations, including the US, Germany, the United Kingdom, Spain, France, the Netherlands, Italy, Canada and Belgium.
Export earnings from these countries amounted to $7.94 billion during the reporting period, accounting for over 90 per cent of the total RMG exports.
During FY25, the RMG sector contributed 8.52 per cent to Bangladesh’s nominal GDP.
The total RMG export earnings for FY25 stood at $39.35 billion, indicating a higher growth of 8.90 per cent as compared to that of the preceding fiscal year’s $36.13 billion, the Bangladesh Bank report added.
According to the quarterly report, the government and the Bangladesh Bank have taken several measures to facilitate the production and export of the RMG sector, including pre-shipment credit, incentives for export expansion, and funds for export green transformation, export facilitation and export development.
The report also stated that during the first quarter of FY26, Bangladesh’s RMG industry continued to demonstrate its vital role.
‘Despite facing a complex global environment marked by trade policy uncertainties, high input costs and fluctuating consumer demand, the sector managed to sustain a modest but steady growth in export earnings,’ the report added.
It also said that this performance reflected the industry’s strong production capacity, resilience and adaptability to shifting international market dynamics.
The report suggested enhancing trade negotiations and technological upgrades through strategic policy support to sustain export momentum.
‘Strengthening value addition through backward linkage industries, improving labour productivity and ensuring environmental and social compliance would be critical to maintaining Bangladesh’s competitive edge in the global apparel market,’ the report added.
Regarding the value addition, Inamul Haq Khan, senior vice president of the Bangladesh Garment Manufacturers and Exporters Association, said that they were always trying to increase value addition for competitiveness.
He also said that the sector focuses on producing high-value products, innovation, and research and development, urging governmental policy supports in this regard.
