Bangladesh’s export sector showed strong performance in the opening months of the current fiscal year, but a noticeable slowdown in August has raised concerns among industry experts.
According to the latest data released by the Export Promotion Bureau (EPB), the country earned $8.69 billion in exports during July and August of FY2025–26, marking a 10.61 percent increase compared to the same period last fiscal year.
However, the momentum faltered in August. Export earnings for the month declined to $3.92 billion, reflecting a 2.93 percent drop from $4.03 billion recorded in August 2024.
Analysts interpret this decline as a potential signal of global economic volatility and shifting demand in key markets.
They also point to Bangladesh’s continued dependence on the ready-made garment (RMG) sector and the lack of significant progress in diversifying export destinations as contributing factors to the slowdown.
While the overall figures for July and August remain positive, a closer look reveals mixed results within the RMG sector—the backbone of Bangladesh’s exports.
In July, exports from the apparel industry reached 47.13 billion, which was a 9.63 percent increase from the $6.5 billion recorded in July 2024.
Knitwear exports rose to $3.95 billion, showing a 9.11 percent increase, while woven garments brought in USD 3.18 billion, up 10.28 percent year-on-year.
In contrast, August saw a reversal in this trend. Total RMG exports fell to $3.17 billion, representing a 4.75 percent decrease from the same month last year.
Within this category, knitwear exports dropped to $1.77 billion, a decline of 6.34 percent, while woven garments fell to $1.40 billion, down 2.65 percent.
Industry stakeholders and policymakers have expressed concern over the August figures, suggesting they could indicate more challenging months ahead if corrective measures are not taken.
They argue that while Bangladesh’s export base remains stable for now, sustaining this growth will be difficult without significant structural improvements.
There is growing consensus that Bangladesh must look beyond its traditional markets and apparel-focused portfolio.
Exporters believe that identifying and entering new global markets is essential to ensure long-term resilience. At the same time, diversification of product lines and improvements in logistics and supply chain management are seen as critical to enhancing competitiveness.
Some officials warn that over-reliance on the RMG sector exposes the country to risks from changing trade policies, shifting consumer behavior, and global economic headwinds.
Despite the encouraging start to the fiscal year, August’s decline serves as a reminder that Bangladesh’s export growth remains fragile.
With global economic uncertainties continuing to unfold, maintaining momentum in the coming months will require proactive policy decisions and coordinated efforts across government and industry.