Bangladesh’s ready-made garment (RMG) exports have slipped into contraction in the current fiscal year, reversing the strong momentum recorded in FY2024-25, according to data from the Export Promotion Bureau (EPB).
Export earnings from both woven and knitwear shipments declined in most recent months, signalling softer global demand and mounting pressure on the country’s largest export sector.
Overall performance weakens
During July-February of FY2025-26, total RMG exports stood at $25.80 billion, down 3.73% year-on-year from $26.80 billion in the same period of FY2024-25.
The data showed that woven garment exports totalled $12.11 billion, down by 2.79% during the period while knitwear exports declined 4.56% to $13.69 billion.
The downturn marks a clear shift from the previous fiscal year, when Bangladesh’s apparel exports recorded solid growth.
Broad-based monthly decline
After a strong start in July, export performance weakened almost continuously.
Total shipments grew 24.67% in July, but from August onward most months registered negative growth.
The sharpest contractions were recorded in December (-14.23%) and February (-13.21%), while January showed near stagnation at -1.35%.
Both woven and knit segments followed a similar downward trajectory, suggesting a systemic slowdown rather than weakness in a single product category.
Sharp contrast with FY2024-25
The latest slowdown follows a buoyant FY2024-25, when Bangladesh’s RMG exports reached $39.35 billion, marking 8.84% growth.
During the period, woven shipments rose 7.82% while knitwear expanded 9.73%.
Growth that year was broad-based, particularly between September and December, when monthly increases frequently exceeded 15%.
Drivers behind the slowdown
Industry analysts attribute the weaker performance to a mix of external and structural factors, including cooling consumer demand in key Western markets, retail inventory adjustments in the US and Europe, continued price competition from rival sourcing countries, and persistent cost pressures for Bangladeshi manufacturers.
The sharper decline in knitwear exports suggests buyers may be trimming orders first in high-volume basic apparel categories.
Outlook cautious
Unless demand improves in major destination markets, Bangladesh’s RMG sector may face a challenging second half of FY2025-26.
However, the strong base created in the previous fiscal year may help cushion the full-year impact.
The figures were compiled from the Export Promotion Bureau and industry sources, including former officials of the Bangladesh Garment Manufacturers and Exporters Association.