Business Report :
Bangladesh’s readymade garment (RMG) exports, the backbone of the economy have come to a worrying standstill in the first five months of FY26, as global and domestic pressures converge. Export Promotion Bureau data shows earnings from July to November reached $16.13 billion, just 0.09 percent higher than last year, raising concerns for a sector that drives over 80 percent of national exports.
Knitwear drops, woven garments inch forward
Knitwear exports fell by 1 percent to $8.86 billion, while woven garments grew by 1.44 percent to $7.28 billion. Weak demand across the EU, US, and UK has dragged down winter-related orders, especially in knitwear.
Bangladesh Apparel Exchange managing director Mohiuddin Rubel said retaining market position amid global uncertainty is positive, but warned that without new markets, product diversification, and technology investment, future growth will be at risk.
November slump deepens concerns
Exports in November fell 5 percent year-on-year to $3.14 billion. Knitwear declined 6.89 percent, and woven garments dropped 2.90 percent, as major brands shifted to smaller orders. Experts say the full impact of the Trump administration’s new tariff measures is yet to be seen, but buyers are already acting cautiously.
High inflation in Western markets has reduced clothing purchases, pushing retailers toward smaller, conservative buying cycles. Meanwhile, US tariff uncertainty and China-related trade tensions have forced brands to rethink sourcing strategies, affecting Bangladesh’s order flow.
Rising production costs driven by volatile freight rates, raw material prices, and domestic foreign exchange strain are also limiting factories’ ability to take new orders. At the same time, competitors like Vietnam, India, Turkey, and Indonesia are capturing market share through aggressive incentives and expanded capacity.
Strengths remain, but risks rising
Bangladesh has held its ground thanks to improved factory safety, a growing number of green factories, and large-scale production capabilities. Still, industry leaders fear prolonged stagnation could disrupt investment plans and weaken buyer confidence.
To regain momentum, experts suggest diversifying into higher-value products, expanding into new regions such as Latin America and Eastern Europe, boosting efficiency, and enhancing technological capacity. They also call for stronger government support reducing logistics costs, stabilising the foreign exchange environment, and active diplomatic engagement with the US and EU to protect trade interests.
With a weakened global economy likely to persist, the pace of export recovery will depend on international purchasing power, tariff developments, and Bangladesh’s ability to break out of dependence on traditional markets.
