Bangladesh's export earnings continue to face pressure, falling for the seventh consecutive month as global market challenges and US counter-tariffs disrupt orders. Ready-made garments (RMG), the backbone of the country's exports, have seen notable declines, raising concerns about employment, competitiveness, and overall economic stability.
The export revenue in January 2026 fell slightly by 0.5 per cent to US$4.41 billion, compared to $4.43 billion in January 2025, according to a report released by the Export Promotion Bureau (EPB) on Monday.
During the July-January period of fiscal year 2025-26, exports declined by 1.93 per cent to $28.412 billion, compared to $28.96 billion during the same period of the previous fiscal year.
Exports have been declining consistently over the past several months, with December 2025 alone recording a 14.25 per cent drop. Traders attribute the slowdown primarily to US counter-tariffs, which have discouraged buyers from placing new orders.
Additionally, competing countries such as China and India are offering products at lower prices to EU markets, putting Bangladeshi exporters at a disadvantage.
EPB data shows that RMG exports, which account for more than 80 per cent of total exports, totalled $22.98 billion during July-January, reflecting a 2.43 per cent year-on-year decline. Knitwear exports stood at $12.29 billion (-3.13pc YoY), while woven garments totaled $10.69 billion (-1.60pc YoY). For January 2026 alone, RMG exports were $3.61 billion, down 1.35 per cent from January 2025, with knitwear at $1.80 billion (-2.61pc YoY) and woven at $1.81 billion (-0.07pc YoY).
Industry leaders are expressing concern about the sustained slump. Mohammad Hatem, president of BKMEA, pointed out that India has announced Rs 4.5 billion in aid to protect its exporters from US tariffs, while Bangladesh has withdrawn some existing incentives due to LDC and IMF concerns, putting the country behind competitors.
Former BGMEA director Mohiuddin Rubel noted that global trade patterns are shifting due to tariffs, particularly in the US, which has yet to stabilize its import prices.
BGMEA president Mahmud Hasan Khan added that around 358 factories have closed in the past 18 months, leaving over 100,000 workers unemployed, while 166 new factories have opened. Rising production costs, power shortages, and wage adjustments are further straining exporters' ability to maintain stable supply chains.
The combination of declining RMG exports, rising global competition, and financial pressures on factories poses a significant risk to Bangladesh's overall export growth and employment stability. Experts warn that if these trends continue, international buyers may increasingly shift orders to Vietnam, Cambodia, or Indonesia.
