Bangladesh’s ready-made garment exports to the major destinations plunged further in the first seven months of the current financial year 2025–26 amid persistent domestic and global challenges.
According to detailed country-wise export data from the Export Promotion Bureau, Bangladesh exported RMG items worth $22.98 billion in the July-January period of FY26, marking a 2.43 per cent decline from $23.55 billion earned in the same period of FY25.
The RMG manufacturers said exporters faced domestic issues, including political tensions that eroded buyers’ confidence in Bangladeshi manufacturers.
Moreover, shipments have continued to decline due to weak global demand, fewer buyer inquiries, and intense competition, particularly in European markets.
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.
Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said RMG exports have remained in negative territory mainly due to weak global demand.
Moreover, the new US tariff regime has caused significant upheaval in global export markets and has affected Bangladesh’s exports to the US and Europe.
Weak global demand, intense competition in EU markets, and domestic political tensions forced buyers to place fewer orders, which affected overall exports, he added.
He also said the situation might continue for the coming months and could rebound if fair and free elections are held and an elected government is formed.
During July–January of FY26, Bangladeshi exporters recorded a 3.98 per cent decline in shipments to the EU—the largest destination for Bangladesh’s apparel exports—to $11.34 billion, down from $11.81 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 seven months of FY26, although narrow to moderate growth was recorded in Spain, the Netherlands, and Poland.
Export earnings from the United States declined for the second consecutive month by 0.3 per cent to $4.471 billion in July–January FY26, compared with $4.472 billion in the same period of FY25.
The US, the largest single-country destination for Bangladeshi apparel, accounted for around 19 per cent of 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 2.55 per cent to $2.61 billion in the first seven months of FY26, up from $2.55 billion in the same period of FY25.
From Canada, RMG industry bagged $784 million during the reporting period, up 4.42 per cent from $751 million in the corresponding period of the previous financial year.
Among major EU markets, exports to Germany declined by 10.9 per cent to $2.65 billion in July–January FY26, compared with $2.97 billion in the same period of FY25, EPB data showed.
In the first seven months of FY26, exports to France fell by 9.87 per cent to $1.15 billion from $1.28 billion, while exports to Italy declined by 5.49 per cent to $890 million from $941 million during the same period.
However, exports to Spain stood at $2.14 billion, while shipments to the Netherlands and Poland amounted to $1.27 billion and $1.05 billion, respectively, all of which posted low to moderate growth in the July-January 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–January FY26, exports to non-traditional destinations fell by 4.99 per cent to $3.76 billion, compared with $3.96 billion in the same period of FY25.
Non-traditional markets accounted for 16.4 per cent of Bangladesh’s total RMG exports during the period.
Regarding nontraditional markets, Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association, said Bangladesh is lagging behind due to a lack of innovation, research and development, and technology adoption.
Moreover, due to US tariffs, competitors aggressively shifted their exports to nontraditional markets, including Bangladesh.
‘Because, we label them as nontraditional, but Vietnam considers Japan as one of their major destinations, which impacted our exports,’ he added, saying that Bangladesh still focuses on the EU and US, urging market diversification.
Regarding the national election scheduled for February 12, Rubel said that, as businesspeople, they expect the incoming government to provide an environment of the rule of law, a stable law-and-order situation, and business-centric policies.
Exports to Japan declined by 2.84 per cent to $701 million in the July-January period of FY26, down from $721.5 million in the same period of FY25.
Exports to Australia plunged by 13.26 per cent to $445 million, while shipments to India declined by 8.13 per cent to $393 million. Exports to Mexico fell sharply by 17.39 per cent to $172 million, EPB data showed.
Exporters also expressed optimism that exports could rebound from the coming months if a fair election restores political stability and buyers’ confidence. In FY25, the RMG sector earned $39.35 billion from global markets.
