Bangladesh’s ready-made garment (RMG) industry, the backbone of the country’s export economy, posted a decline in export earnings during the first eleven months of fiscal year (FY) 2025-26, reflecting weaker global demand and mounting pressure in key apparel markets.
According to data released by the Export Promotion Bureau (EPB), Bangladesh exported apparel worth USD 35.31 billion during the July–May period of FY2025-26, down 3.41% from USD 36.56 billion recorded during the same period of FY2024-25.
The decline was driven by contractions in both major apparel categories. Knitwear exports totaled USD 18.78 billion, falling 4.26% from USD 19.62 billion a year earlier, while woven garment exports declined 2.42% to USD 16.53 billion from USD 16.94 billion.
The latest figures indicate that Bangladesh’s apparel sector struggled to maintain the growth momentum seen at the beginning of the fiscal year as demand weakened across several major export destinations.
Bangladesh’s RMG Export to World (All Countries)
FY 2024-25 vs FY 2025-26 (July–May)
Value in Million US$
| Month | Woven 2024/25 | Woven 2025/26 | Growth % | Knit 2024/25 | Knit 2025/26 | Growth % | Total 2024/25 | Total 2025/26 | Growth % |
|---|---|---|---|---|---|---|---|---|---|
| July | 1,449.45 | 1,783.96 | 23.08% | 1,729.02 | 2,178.69 | 26.01% | 3,178.47 | 3,962.65 | 24.67% |
| August | 1,434.87 | 1,396.85 | -2.65% | 1,891.10 | 1,771.17 | -6.34% | 3,325.97 | 3,168.02 | -4.75% |
| September | 1,280.60 | 1,209.61 | -5.54% | 1,729.50 | 1,630.14 | -5.74% | 3,010.11 | 2,839.75 | -5.66% |
| October | 1,438.79 | 1,362.14 | -5.33% | 1,857.67 | 1,657.80 | -10.76% | 3,296.45 | 3,019.94 | -8.39% |
| November | 1,567.92 | 1,522.46 | -2.90% | 1,738.27 | 1,618.48 | -6.89% | 3,306.19 | 3,140.94 | -5.00% |
| December | 1,878.70 | 1,602.35 | -14.71% | 1,891.81 | 1,631.79 | -13.74% | 3,770.51 | 3,234.13 | -14.23% |
| January | 1,814.04 | 1,812.84 | -0.07% | 1,850.28 | 1,801.92 | -2.61% | 3,664.32 | 3,614.77 | -1.35% |
| February | 1,591.63 | 1,418.74 | -10.86% | 1,652.77 | 1,397.18 | -15.46% | 3,244.40 | 2,815.93 | -13.21% |
| March | 1,643.62 | 1,358.99 | -17.32% | 1,806.30 | 1,423.29 | -21.20% | 3,449.92 | 2,782.27 | -19.35% |
| April | 1,083.35 | 1,437.03 | 32.65% | 1,310.44 | 1,703.87 | 30.02% | 2,393.79 | 3,140.90 | 31.21% |
| May | 1,757.13 | 1,624.82 | -7.53% | 2,161.93 | 1,969.32 | -8.91% | 3,919.07 | 3,594.14 | -8.29% |
| June | — | — | — | — | — | — | — | — | — |
| Total (July–May) | 16,940.10 | 16,529.79 | -2.42% | 19,619.09 | 18,783.65 | -4.26% | 36,559.19 | 35,313.44 | -3.41% |
Source: Export Promotion Bureau (EPB)
Compiled by: Mohiuddin Rubel, Former Director, BGMEA
Also Read: EU Apparel Imports Fall 11.27% as Bangladesh Exports Decline Sharply
A detailed analysis of the EPB data shows a highly uneven performance throughout the year.
The fiscal year began on a strong note in July 2025. Total apparel exports surged to USD 3.96 billion, representing a robust 24.67% year-on-year increase from USD 3.18 billion in July 2024. Knitwear exports climbed 26.01% to USD 2.18 billion, while woven shipments rose 23.08% to USD 1.78 billion.
However, the positive trend quickly reversed. In August, total exports slipped 4.75% to USD 3.17 billion. September saw a further decline of 5.66%, bringing earnings down to USD 2.84 billion. The slowdown intensified in October, when exports dropped 8.39% year-on-year to USD 3.02 billion.
November also remained in negative territory, with apparel exports decreasing 5.0% to USD 3.14 billion.
The sharpest setback came in December. Total RMG exports fell 14.23% year-on-year to USD 3.23 billion, compared with USD 3.77 billion in December 2024. Knitwear exports dropped 13.74% to USD 1.63 billion, while woven exports declined 14.71% to USD 1.60 billion, highlighting broad-based weakness across product categories.
The downturn continued into the new calendar year. January exports were relatively stable, edging down just 1.35% to USD 3.61 billion. However, February witnessed another major decline as shipments fell 13.21% to USD 2.82 billion. Knitwear exports contracted 15.46%, while woven exports dropped 10.86%.
Conditions worsened further in March. Total exports fell 19.35% year-on-year to USD 2.78 billion, marking the steepest monthly decline of the fiscal year. Knitwear exports plunged 21.20% to USD 1.42 billion, while woven garment shipments fell 17.32% to USD 1.36 billion.
A temporary recovery emerged in April. Total apparel exports rebounded sharply to USD 3.14 billion, posting a 31.21% growth rate compared with April 2025. Knitwear exports increased 30.02% to USD 1.70 billion, while woven exports rose 32.65% to USD 1.44 billion.
The recovery, however, proved short-lived.
In May 2026, Bangladesh’s apparel exports once again returned to negative territory. Total RMG exports fell 8.29% year-on-year to USD 3.59 billion, down from USD 3.92 billion in May 2025. Knitwear exports declined 8.91% to USD 1.97 billion, while woven garment exports decreased 7.53% to USD 1.62 billion.
Industry observers say the prolonged weakness reflects soft consumer spending in major Western markets, persistent inflationary pressures, cautious inventory management by global retailers, and heightened competition among sourcing destinations. Earlier EPB data showed that Bangladesh’s exports to several traditional markets, including the European Union and the United States, experienced slower growth or contraction during the fiscal year, while non-traditional markets also faced challenges.
The latest performance also comes as Bangladesh’s export-oriented industries face rising production costs, wage adjustments, compliance investments and growing uncertainty in global trade. To support export sectors, including garments, Bangladesh’s central bank recently unveiled a stimulus package aimed at boosting industrial activity and restoring business confidence amid slowing economic growth.
Despite the decline, the RMG sector continues to account for more than four-fifths of Bangladesh’s total export earnings and remains the country’s largest source of foreign exchange.
With only June data remaining before the fiscal year concludes, exporters are now looking for stronger order flows in the second half of 2026. Industry leaders say sustained recovery will depend largely on improved consumer demand in key markets, greater sourcing diversification by international brands, and Bangladesh’s ability to enhance competitiveness through productivity, sustainability and value-added apparel production.
