Bangladesh’s merchandise exports fell 0.58 percent year-on-year to $48 billion in the fiscal year 2025-26 as weaker shipments during most of the year offset a sharp rebound in June, according to provisional data released by the Export Promotion Bureau (EPB) on Thursday.
Exports declined in 10 of the 12 months of the fiscal year, with only July and April posting year-on-year growth before overseas shipments rebounded strongly in June.
The country earned $4.20 billion from merchandise exports in June, up nearly 26 percent from $3.33 billion in the same month a year earlier. However, the late recovery was insufficient to lift overall annual exports above the previous year’s level of $48.28 billion.
Readymade garments (RMG), Bangladesh’s largest export sector, earned $38.70 billion during the fiscal year, down 1.64 percent from $39.35 billion a year earlier.
The sector, however, staged a strong recovery in June, with exports rising 21.5 percent year-on-year to $3.38 billion.
Outside apparel, several sectors recorded positive growth over the fiscal year. Leather and leather products exports increased 7.09 percent to $1.23 billion, while jute and jute goods rose 7.75 percent to $883.69 million.
Home textiles posted 6.52 percent growth and engineering products expanded 21.77 percent. Agricultural product exports also registered strong growth in June.
The government’s export target of $55 billion for FY26 remained well out of reach as exporters grappled with subdued global demand, geopolitical uncertainty, persistent inflation in major markets and heightened competition.
Exporters in the apparel sector said Bangladesh’s shipments to key markets, particularly the United States, were affected by higher import tariffs imposed by the administration of US President Donald Trump, while intense competition in Europe and disruptions linked to the conflict involving Iran further weighed on orders.
They warned that slower export growth has already led to factory closures and job losses in parts of the industry.
Despite the decline in merchandise exports, Bangladesh’s external sector remained supported by strong remittance inflows. The country received $35.56 billion in remittances in FY26, nearly 17 percent higher than the previous fiscal year.
Lower import payments, combined with higher remittance earnings, helped lift the country’s foreign exchange reserves to $31.53 billion at the end of June under the BPM6 accounting standard, although stronger export performance could have further boosted reserves.
According to the EPB, the US remained Bangladesh’s largest single export destination in FY26, followed by Germany and the United Kingdom.