Bangladesh’s readymade garment (RMG) sector posted a strong rebound in April, with export earnings rising by more than 31% after eight straight months of decline. While the growth brings short-term relief to the country’s key export industry, sector leaders warn that it may not signal a stable or lasting recovery.
According to the latest data from the Export Promotion Bureau and the Bangladesh Garment Manufacturers and Exporters Association, garment exports reached $3.14 billion in April, compared to $2.39 billion in the same month last year. This represents a year-on-year growth of 31.21%, marking the first positive performance after a prolonged downturn.
The sector had been experiencing consistent negative growth since August, reflecting a challenging global and domestic environment. Monthly export declines ranged from around 4.7% in August to a steep 19.35% in March. This downward trend was driven by factors such as reduced global demand, cautious purchasing by international retailers, and disruptions in local production schedules.
April’s sharp increase, therefore, stands out as a notable shift. However, industry insiders emphasize that the growth is largely influenced by temporary and seasonal factors rather than a clear improvement in market demand.
Md. Shihab Uddoja Chowdhury explained that production activities in February and March were significantly affected by a combination of factors, including the shorter duration of February, national elections, and the Eid-ul-Fitr holidays. As a result, factories operated for only about 35 effective working days during that period, leading to lower output and delayed shipments.
Many of those delayed orders were eventually shipped in April, contributing to the strong export figures for the month. In addition, April last year had relatively lower export earnings due to Eid holidays falling within that month, creating a low base for comparison. This “base effect” has made this year’s growth appear more pronounced.
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Despite the positive monthly performance, the overall trend for the current fiscal year remains under pressure. Between July and April of the 2025–26 fiscal year, Bangladesh’s garment exports declined by 2.82%, totaling $31.71 billion, compared to $32.64 billion in the same period of the previous year. This suggests that the sector has yet to fully recover from the challenges it has faced over the past several months.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, also expressed caution regarding the April rebound. He noted that the increase was largely driven by the shipment of pending orders that could not be delivered in March due to extended holiday closures.
According to him, there has been no significant rise in new orders or expansion in the number of international buyers. This indicates that the April growth does not reflect a broader improvement in demand but rather a shift in the timing of exports.
Industry stakeholders are also concerned about potential disruptions in the coming months. With additional holidays expected toward the end of May, factory operations and shipment schedules could again be affected. Such interruptions may lead to uneven export performance in the short term.
Beyond domestic factors, global market conditions continue to play a crucial role. Inflationary pressures in key export markets, changing consumer behavior, and cautious inventory management by retailers have all contributed to fluctuations in apparel demand. As Bangladesh is heavily dependent on exports to Europe and North America, any slowdown in these markets directly impacts the country’s garment sector.
Experts suggest that a clearer understanding of the sector’s recovery will only be possible after reviewing data for the remaining months of the fiscal year. Performance through June and July will help determine whether global demand is stabilizing and whether Bangladesh can maintain consistent export growth.
The RMG sector remains the backbone of Bangladesh’s economy, accounting for the majority of export earnings and providing employment to millions of workers. While April’s strong performance offers a sense of optimism, industry leaders stress the importance of sustained demand, improved productivity, and uninterrupted operations to ensure long-term growth.
For now, the April rebound is seen as a positive but cautious signal, one that highlights both the resilience of the sector and the uncertainties that still lie ahead.
