The export performance of the country’s readymade garment sector might face growing headwinds in the coming quarters, said a report published by the Bangladesh Bank on Sunday.
Moreover, RMG exports would largely depend on the pace of economic recovery in major destinations, the stabilisation of global supply chains, and the sector›s ability to diversify products and markets.
The report, titled Quarterly Review of Readymade Garments, also stated that the near-term outlook for the RMG sector would remain ‘cautiously moderate’, reflecting a combination of external demand uncertainty and emerging opportunities in key export markets.
‘Strengthening logistics, enhancing productivity and expanding into higher value apparel segments might be critical for maintaining the competitiveness of Bangladesh in the global garment market,’ the report suggested.
In the meantime, a prolonged Middle East crisis could create severe disruptions to energy supply and trade routes, and trigger global economic turmoil, said industry insiders.
According to the central bank’s report, Bangladesh’s RMG sector earned $9.75 billion in the October-December quarter of the financial year 2025-26, down 5.99 per cent from $10.36 billion earned in the same period of FY25.
The BB said that during this period, global demand conditions, inflationary pressures in importing countries, shifts in consumer spending patterns, and supply chain adjustments influenced order volumes and export receipts.
Moreover, production costs, exchange rate movements, and logistical conditions also played a considerable role in shaping the competitiveness of Bangladesh›s garment exports.
Meanwhile, export earnings in the October-December quarter of FY26 declined by 1.78 per cent from $9.9 billion earned in the preceding quarter, July-September, of FY26.
During the second quarter of FY26, the 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 $3.49 billion, accounting for 35.78 per cent of total RMG export earnings.
In other words, the net exports from this sector amounted to $6.26 billion, or 64.22 per cent of total RMG exports, in the October-December quarter of FY26.
The net exports were 2.84 per cent higher than those of the preceding quarter (July-September of FY26), which were $6.08 billion, and 1.09 per cent lower than those of the October-December of FY25, which were $6.32 billion, the central bank data stated.
During October-December 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 $6.83 billion during the reporting period, accounting for over 70 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 with 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 production and exports in the RMG sector, including pre-shipment credit, funds for 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.
Regarding value addition, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that Bangladeshi RMG manufacturers have been working to increase it to remain competitive in global markets.
He also said that the sector focuses on producing high-value products, innovation, and research and development, urging governmental policy support in this regard.
However, he said that Bangladeshi exports have been declining over the past months, with almost no sign of further increase, as utilisation declarations have also slowed.
Due to the ongoing Middle East crisis, the sector is facing fuel shortages, increased shipping line charges, disruptions in global energy supply, and a possible global economic downturn.
