Export earnings decline to $3.39bn in March

Bangladesh’s merchandise exports saw a sharp decline in March, dropping 19.78% compared to the same period last year, driven by fewer working days, weak global demand, and domestic production challenges.

Provisional data from the National Board of Revenue (NBR) shows that export earnings stood at $3.39 billion in March, down from $4.23 billion a year earlier.

Exporters said the Eid-ul-Fitr holidays reduced working days by 8 to 10 days, limiting shipment capacity.

However, industry insiders believe global factors played a larger role, including sluggish demand in key Western markets and increasing price competition.

They noted that retaliatory tariffs in the United States have led to fewer orders from American buyers.

At the same time, Chinese exporters are diverting goods from the US to Europe, offering lower prices and putting additional pressure on Bangladeshi products.

The latest figures also indicate a continued slowdown in the 2025–26 fiscal year. After recording around 25% growth in July, export performance has weakened almost every month since.

In February, earnings were $3.50 billion, reflecting a slight 0.50% year-on-year decline.

The ready-made garment (RMG) sector, which accounts for over 80% of total exports, has been particularly affected, posting consecutive declines for seven months from August to February.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), described the situation as a “perfect storm” of both global and domestic challenges.

He said orders from the US and European Union have declined due to retaliatory tariffs, while tensions in the Middle East are further affecting recovery prospects.

He also highlighted domestic issues such as diesel shortages disrupting factory operations and urged the government to ensure a steady supply of fuel and energy to maintain production.

The NBR data is based on customs records and includes actual exports, sample shipments, and deemed exports such as supplies to export-oriented industries.

The Export Promotion Bureau (EPB) has yet to publish its official monthly export figures.