A combination of global economic recession, high inflation, declining retail purchasing power, and instability in trade policies has brought Bangladesh’s ready-made garment (RMG) export growth to a near standstill in the first five months of the 2025–26 fiscal year.
According to the latest data released by the Export Promotion Bureau (EPB), Bangladesh earned USD 16.13 billion from apparel exports between July and November—an increase of only 0.09% compared to the same period last year. This means the country’s biggest export sector is now effectively experiencing zero growth.
- Negative Growth in Knitwear; Woven Shows Modest Increase
- A clear sector-wise disparity is visible within RMG exports.
- Knitwear exports stood at USD 8.86 billion, a 1% decline from last year.
- Woven garment exports rose to USD 7.28 billion, up 1.44% year-on-year.
Industry leaders say demand in Bangladesh’s top three markets—the European Union, the United States, and the United Kingdom—has weakened consistently over the past year. Since a large portion of winter products falls under knitwear, the drop in orders has directly reduced earnings.
Mohiuddin Rubel, Managing Director of Bangladesh Apparel Exchange and former BGMEA director, told Bangla Tribune:
“Despite global fluctuations in demand, Bangladesh has managed to maintain its position. But the decline in knitwear orders is a clear warning for us—without expanding into new markets, developing new products, and investing in technology, sustaining future growth will be difficult.”
Major Shock in November: Exports Down 5%
In November 2025, apparel export earnings fell to USD 3.14 billion, which is 5% lower than the previous year’s November.
Breakdown by category:
- Knitwear: USD 1.62 billion (6.89% decrease)
- Woven: USD 1.52 billion (2.90% decrease)
Experts believe the impact of the new tariff policies introduced by the Donald Trump administration in the U.S. is still not fully understood. However, major buyers are adopting extra caution in placing orders, and this is reflected in Bangladesh’s monthly export performance.
Why Are Exports Under Pressure?
Analysts highlight several global factors behind the slowdown:1. Global Inflation and Low Retail Demand
High inflation in the U.S. and Europe has reduced consumers’ tendency to buy new clothing. Retailers are shifting from bulk orders to smaller and more cautious purchases.
2. Trade Policy Uncertainty and Tariff Pressure,
New U.S. tariff structures and the ongoing U.S.–China trade tensions have reshuffled the global apparel market. Some brands are trying to change suppliers, impacting Bangladesh’s order volumes.
3. Foreign Currency Crisis and Higher Supply Chain Costs,
Unstable global freight rates and fluctuating raw material prices have increased production costs. Many factories are facing cash-flow constraints, limiting their capacity to take on new orders.
4. Aggressive Competition from Rival Countries
Vietnam, India, Turkey, and Indonesia have recently announced special incentives to boost exports to Europe and America. This puts Bangladesh at risk of losing part of its market share.
Why Bangladesh Is Still Surviving Despite Challenges
Industry experts say Bangladesh has remained competitive for two key reasons:Improved factory standards and the rise of green industries, Large-scale production capacity, which ensures cost competitiveness.
However, they warn that if the current stagnation continues, it may hinder future investment and expansion.
What Exporters Expect Going Forward
To revive export momentum, businesses highlight several urgent steps:Diversifying into high-value, higher-quality products,Entering new markets, especially in Latin America and Eastern Europe,Increasing production efficiency and upgrading technology, Government support to reduce logistics costs, Stronger engagement with U.S. and EU policymakers, Opportunities Exist, but Risks Remain.
Experts believe the global economy may remain weak for several more months. Whether RMG exports can recover soon will depend on consumer purchasing power, international tariff policies, and how quickly Bangladesh can move toward product diversification.
Despite showing only 0.09% growth, Bangladesh still retains its position as the world’s second-largest apparel exporter—an important source of optimism for the country.
