Bangladesh’s export earnings suffered a sharp year-on-year setback in December 2025, falling by 14.25 percent compared to the same month a year earlier, reflecting mounting external pressures on global trade despite a marginal month-on-month improvement.
According to official data, exports in December stood at US$3,968.28 million, showing a 1.97 percent increase over November 2025. However, the monthly uptick failed to offset the steep annual decline, underscoring the fragility of export recovery amid weakening global demand and rising competition.
The December contraction also weighed on overall performance in the first half of the current fiscal year.
During July–December of FY2025–26, total export earnings amounted to $23,998.87 million, marking a 2.19 percent decline from $24,533.50 million recorded in the corresponding period of the previous fiscal year.
The readymade garment (RMG) sector, the country’s dominant export earner, continued to cushion the fall, generating $3,234.13 million in December.
Apparel exports rose 1.97 percent from November, with both knitwear and woven garments maintaining momentum, though the sector was not immune to the broader year-on-year downturn.
Several non-RMG sectors posted month-on-month growth in December, including jute and jute goods, specialised textiles, home textiles, frozen and live fish, vegetables, chemical products, rubber, leather and bicycles, highlighting ongoing efforts toward export diversification. However, these gains were insufficient to reverse the overall annual decline.
In terms of destinations, the United States, Germany and the United Kingdom remained the top three markets in December, registering growth of 7.14 percent, 18.08 percent and 14.50 percent respectively compared to the previous month.
Exports to emerging and strategic markets also expanded, notably the United Arab Emirates (25.39 percent), Australia (21.33 percent) and Canada (9.13 percent).
Analysts attribute the December year-on-year drop to a combination of weakening global demand, reciprocal tariffs imposed by the United States, China’s aggressive push into markets where Bangladesh is traditionally competitive, rising production costs, and persistent geopolitical and trade uncertainties, all of which continue to weigh heavily on the country’s export outlook.