RMG sector to remain cautiously moderate: BB

RMG export performance in the coming quarters will largely depend on the pace of economic recovery in major importing countries, stabilization of global supply chains, and the ability of the sector to diversify products and markets, Bangladesh Bank (BB) said in a report.

The near-term outlook for the readymade garments industry will remain “cautiously moderate,” reflecting a combination of external demand uncertainty and emerging opportunities in key export markets, according to the “Quarterly Review of Readymade Garments (RMG): October-December of FY26” by BB.

“Strengthening logistics, enhancing productivity and expanding into higher value apparel segments might be critical for maintaining the competitiveness of Bangladesh in the global garment market,” BB said.

The RMG sector continued to occupy the dominant share in the export basket of Bangladesh, accounting for 80.36 percent of total export earnings during the October-December period of FY26.
Amid persistent global demand uncertainty, the sector saw a contraction, with earnings reaching $9.74 billion, a 5.99 percent decline from the $10.36 billion recorded during the same period in the previous fiscal year.

Global demand conditions, inflationary pressures in importing countries, shifts in consumer spending patterns, and supply chain adjustments continue to influence order volumes and export receipts, BB said.

In addition, production costs, exchange rate movements, and logistical conditions play a considerable role in shaping the competitiveness of Bangladesh’s garment exports.

Together, these trends show a large and resilient industry providing the bulk of export earnings and employment, yet facing growing short-term headwinds as it moves into the rest of FY26, BB added.