Bangladesh’s ready-made garment (RMG) exports slowed across most major markets in the first half (July-December) of FY2025-26, weighed down by domestic political instability, law and order challenges and an unfavourable global economic environment.
Export Promotion Bureau data showed that RMG exports declined 2.63 per cent year-on-year to $19.37 billion during the period, compared with $19.88 billion in the same months of FY25. Exporters said political tensions and security concerns at home eroded buyers’ confidence, while weak global demand, inflation, tariff issues and economic slowdown further dampened performance.
Exports fell in key destinations, including the European Union, the United States and non-traditional markets. Shipments to the EU, the largest market for Bangladeshi apparel, dropped 4.41 per cent to $9.46 billion, with sharp declines in Germany, France and Italy. Exports to the US also slipped marginally by 0.1 per cent to $3.83 billion. By contrast, exports to the UK and Canada recorded modest growth, while earnings from non-traditional markets declined more steeply by 5.52 per cent to $3.18 billion.
Industry insiders said buyers shifted orders to rival sourcing countries amid unrest and policy uncertainties, while reduced incentives and stronger government support for exporters in India and China further weakened Bangladesh’s competitiveness. Economists warned that the downturn signals the need for urgent reforms, emphasising political stability, market and product diversification, and a move towards higher-value apparel to revive export growth.
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