Weak global demand, geopolitical turmoil and persistent disruptions to international trade outweighed a late rebound in the readymade garment (RMG) sector, pushing Bangladesh's merchandise exports into negative territory in fiscal year 2025-26.
Data released by the Export Promotion Bureau (EPB) on Thursday showed that total exports fell 0.58 per cent to US$48.0 billion in FY26, down from US$48.28 billion in the previous fiscal year, which had recorded a robust growth of 8.58 per cent.
The decline also left the government's ambitious US$55 billion export target well out of reach. Looking ahead, the EPB has proposed a higher export goal of US$58 billion for FY2026-27, banking on stronger global demand and improved domestic competitiveness.
Trade analysts attributed the setback to sluggish consumer demand in key markets, ongoing geopolitical conflicts, supply-chain bottlenecks and uncertainty surrounding the tariff policies pursued under former US President Donald Trump, all of which continued to reshape global trade patterns and dampen export momentum.
Despite the broader downturn, Bangladesh's apparel industry�"the backbone of the country's export economy�"showed encouraging signs of recovery towards the end of the fiscal year.
EPB figures revealed that readymade garment exports totalled US$38.70 billion during the July-June period, marking a 1.64 per cent decline from US$39.35 billion recorded in FY25.
The sector, however, staged a powerful comeback in June, with exports soaring 21.52 per cent year-on-year to US$3.39 billion, compared with US$2.79 billion in the same month a year earlier.
Knitwear shipments climbed 19.49 per cent to US$1.84 billion during the month, while woven garment exports jumped 24.02 per cent to US$1.55 billion, underscoring a broad-based improvement across the industry.
Former Bangladesh Garment Manufacturers and Exporters Association (BGMEA) director Mohiuddin Rubel said the annual contraction reflected one of the most challenging global trading environments in recent years, but the strong June performance offered grounds for cautious optimism.
"The June figures are encouraging and indicate that demand in major export markets is gradually returning," he said. "To sustain this momentum, Bangladesh must enhance competitiveness, reduce production costs and strengthen policy support so that exporters can diversify products and expand into new markets."
Industry leaders said Bangladesh remains among the world's most dependable apparel sourcing destinations, but warned that rising energy prices, escalating logistics costs, production challenges and continuing global uncertainty are squeezing manufacturers' margins.
They stressed that accelerating product and market diversification, improving infrastructure and securing favourable trade arrangements ahead of the country's graduation from the Least Developed Country (LDC) category will be crucial to restoring export growth and reinforcing Bangladesh's position in the fiercely competitive global marketplace.
