Bangladesh Begins FY27 with 0.9pc Drop in Exports

Bangladesh's merchandise exports started the 2026-27 fiscal year on a negative note, with overall export earnings declining 0.90 percent year-on-year in July, mainly due to a contraction in ready-made garment (RMG) shipments despite the sector's continued dominance in the country's export basket.

According to data released by the Export Promotion Bureau (EPB) on Monday, Bangladesh earned US$4.72 billion from merchandise exports in July 2026, compared with US$4.77 billion in the same month of the previous fiscal year.

The country's largest export-earning sector, the ready-made garment (RMG) industry, also posted negative growth. RMG exports totaled US$3.89 billion in July, down 1.92 percent from US$3.96 billion recorded in July 2025.

The decline was observed in both major apparel categories. Knitwear exports fell 0.90 percent year-on-year to US$2.16 billion, while woven garment exports dropped 3.16 percent to US$1.73 billion during the month.

Despite the year-on-year decline, the sector registered a strong month-on-month recovery. Compared with June 2026, when RMG exports stood at US$3.39 billion, July shipments increased by 14.73 percent, indicating renewed export momentum at the beginning of the new fiscal year.

Reacting to the latest EPB data, Mohiuddin Rubel, Former director of the BGMEA said the July performance should be viewed in the context of an exceptionally high base in the corresponding month of last year.

"The EPB data shows that Bangladesh's RMG exports recorded a slight year-on-year decline of 1.92 percent, totaling US$3.89 billion compared to US$3.96 billion in July 2025," he said.

"However, it is important to note that July 2025 was an exceptionally strong month, marking the highest single-month export performance in Bangladesh's RMG history. Against that extraordinary base, the current figure of nearly US$3.89 billion represents a welcome start to the new fiscal year," Rubel added.

He noted that product-wise performance reflected uneven demand across apparel segments.

"Woven garments bore the brunt of the decline, falling by 3.16 percent year-on-year, while knitwear exports proved comparatively resilient with only a 0.90 percent decline," he observed.

Rubel also said export trends reflected in the industry's own shipment data were largely consistent with the official figures.

"BGMEA's Utilisation Declaration (UD) data also presents a similar picture, with UD value for July 2026 declining by 2.8 percent compared to the same month last year," he said.

According to him, the industry continues to operate under significant domestic and global pressures.

"This performance comes at a time when the industry is navigating a severe gas crisis that is limiting production capacity utilisation, while geopolitical uncertainties continue to disrupt global trade and supply chains," he said.

Despite these challenges, Rubel expressed optimism over the sector's resilience.

"Crossing nearly US$3.89 billion in exports in a single month demonstrates the resilience and competitiveness of Bangladesh's apparel industry. With improved energy supply, policy support and stable global demand, the sector has the potential to regain stronger growth in the coming months," he added.

The apparel sector remains the backbone of Bangladesh's export economy, accounting for more than four-fifths of the country's total merchandise export earnings. Industry leaders have repeatedly called for uninterrupted gas and electricity supply, faster customs and port services, and policy stability to help exporters remain competitive amid increasing global competition and rising production costs.

The July export performance underscores that while Bangladesh's export sector has begun the new fiscal year on a weaker footing compared with the same period last year, the month-on-month improvement in garment shipments offers some encouragement for exporters hoping for a stronger recovery in the months ahead.