Bangladesh’s readymade garment (RMG) exports slowed in the first quarter of the 2025–26 fiscal year as shifting trade policies and softer global demand created mounting pressures on the sector, new data from Bangladesh Bank shows.
The central bank’s quarterly review warns that the industry faces persistent challenges through the remainder of FY ’26, shaped by weakening demand in key markets and growing geopolitical and trade risks. Rising US tariffs and related tensions are highlighted as potential sources of uncertainty for order flows, with implications for Bangladesh’s competitiveness.
Despite these headwinds, export earnings for July–September of FY ’26 reached US $9.93 billion, up from US $9.51 billion a year earlier — a year-on-year increase of 4.34%. Earnings were also 8.88% higher than the US $ 9.11 billion recorded in the April–June quarter of FY ’25.
Imports of raw materials — including raw cotton, synthetic fibres, mixed yarns, cotton yarn, fabrics and accessories — totalled US $ 3.84 billion in the first quarter, equivalent to 38.66% of RMG export receipts. Net exports for the July–September period therefore stood at US $ 6.08 billion, or 61.34% of all RMG exports. This marks an 8.37% rise from the same quarter of the previous fiscal year and a 17.62% increase from April–June of FY ’25.
The United States, Germany, the United Kingdom, Spain, France, the Netherlands, Italy, Canada and Belgium remained the top nine markets for Bangladesh’s apparel shipments, accounting for more than 90% of export revenues in the period, totalling US $ 7.94 billion. The RMG industry contributed 8.52% to Bangladesh’s nominal GDP in FY ’25.
Bangladesh Bank’s figures show overall RMG export earnings for FY ’25 reached US $ 39.35 billion, reflecting an 8.90% increase from the previous fiscal year’s US $ 36.13 billion.
The quarterly report notes a range of government and Bangladesh Bank measures supporting production and exports, including pre-shipment credit, incentives for export expansion, and funding for green transformation, export facilitation and export development.
The review stresses the continued importance of the RMG sector in early FY ’26 and calls for stronger trade negotiations and technological advancement to sustain export momentum. It concludes that improving value addition through backward linkage industries, boosting labour productivity and ensuring environmental and social compliance will be essential for Bangladesh to maintain its competitive edge in the global apparel market.
Bangladesh Garment Manufacturers and Exporters Association Senior Vice-President Inamul Haq Khan said the organisation remained committed to strengthening value addition as part of its drive for greater competitiveness.
