Multiple challenges have caused the growth of Bangladesh's readymade garment (RMG) exports to come to a standstill in the first five months of FY26.
The latest data released by the Export Promotion Bureau (EPB) says that RMG export earnings stood at $16.13 billion during the period from July to November, which is only 0.09% more than the same period of the previous fiscal.
In other words, the country's main export sector is standing at almost zero growth.
The sector-wise differences in exports during this period are quite noticeable. Knitwear export earnings were $ 8.86 billion, which is 1% less than last year.
On the contrary, oven exports increased to $ 7.28 billion, a growth of 1.44%.
Traders say consumer demand in the three major markets—the European Union, the United States, and the United Kingdom—has been consistently weak over the past year. Especially since knitwear, a major part of winter goods, has put pressure on direct earnings.
Bangladesh Apparel Exchange managing director and former BGMEA director Mohiuddin Rubel told Bangla Tribune: “Bangladesh has maintained its position despite fluctuations in demand in the global market. However, the decline in orders in the knitwear sector is giving us a clear warning—without new markets, new products, and technology investments, it will be difficult to sustain growth in the future.”
Export earnings in November 2025 were $3.14 billion, down 5% from November last year.
Sector-wise declines were—knitwear: $1.62 billion (down 6.89%). Ovens: $1.52 billion (down 2.90%).
Experts say the impact of the Donald Trump administration’s new tariff policy in the United States is yet to be fully understood. However, big buyers are being extra cautious in placing orders, and this is having an impact on Bangladesh's monthly exports.
According to analysts, several international factors have become clear behind the slowdown in Bangladesh's garment exports:
Global inflation and retail market shock: High inflation in the US and Europe has reduced the trend of buying new clothes. Retailers are leaning towards small and cautious purchases instead of large orders.
Uncertainty in trade policy and tariff pressure: The new US tariff structure and trade tensions with China have created a restructuring in the garment market. Some brands are trying to change suppliers, which is also affecting Bangladesh-related orders.
Foreign exchange crisis and rising supply chain costs: Production costs have increased due to unstable global freight rates and raw material prices. Many factories are also facing restrictions on accepting new orders due to cash flow problems.
Competitive countries' aggressive attempts to capture markets: Vietnam, India, Turkey and Indonesia have announced special incentives to increase exports to Europe and America in recent months. As a result, Bangladesh is at risk of losing a share of the market.
How is Bangladesh surviving?
Industry stakeholders believe that despite global uncertainty, Bangladesh is surviving in the competition for two reasons - improved factory environment and expansion of green industries, and maintaining cost competitiveness due to the large production scale.
However, they warn that if the current market stagnation is prolonged, investment and expansion plans may be disrupted.
According to traders, some strategic steps are necessary now to restore the momentum of exports, including diversification of high-quality and high-value products, entry into new markets, especially Latin America and Eastern Europe, increasing production efficiency and developing technology, raise government support to reduce logistics costs, and play an active role in policy-making discussions with the US and the EU.
According to experts, the global economy may remain weak for a few more months.
As a result, whether RMG exports will recover quickly will depend on the purchasing power of buyers, international tariff policies, and how quickly Bangladesh can diversify its products.
