Bangladesh’s garment exports rose 11% year on year to $10.10 billion in the April-June quarter of FY2025-26, according to Bangladesh Bank’s latest quarterly review.
Despite the growth, the central bank warned that the apparel sector continues to face rising production costs, stronger competition and global economic and geopolitical uncertainty.
Bangladesh Bank said export diversification, value-added production and higher productivity will be crucial to sustain growth and strengthen the resilience of the RMG industry.
The sector’s net exports, calculated by deducting raw material import costs from export earnings, increased to 62% in the fourth quarter of FY26, compared with 57% in the same period a year earlier.
During the quarter, nine major markets, including the United States, Germany, the United Kingdom, Spain and the Netherlands, accounted for $7.24 billion, or 72% of Bangladesh’s total RMG export earnings.
For the full FY26, Bangladesh’s apparel export earnings reached $38.97 billion, marking a modest 1% year-on-year increase.
However, the RMG sector’s contribution to Bangladesh’s nominal GDP declined to 7.82% in FY26, from 8.52% a year earlier.
Knitwear exports increased 10% year-on-year during the April-June quarter. Bangladesh Bank attributed the growth partly to a temporary recovery in international demand, higher shipments to major markets and favorable shipment timing around Eid-ul-Azha.
However, the central bank cautioned that the recovery remains fragile due to weak global apparel demand, rising production costs, intensified competition and uncertainty over US trade policy.
Woven garment exports performed slightly better, rising 12% year-on-year during the quarter. The growth was supported by renewed shipments to major Western markets, particularly the United States, following a prolonged period of declining exports.
Weak demand in the European Union remained a major challenge for Bangladesh, as lower apparel consumption and growing competition from rival suppliers continued to affect the market.
Meanwhile, relatively strong performance in the US and Canadian markets helped offset weaker exports to the EU and non-traditional markets.
Bangladesh Bank noted that part of the fourth-quarter growth was driven by base effects and shipment timing rather than a sustained recovery in global apparel demand.
Looking ahead, the central bank said the near-term outlook for Bangladesh’s RMG sector remains moderately positive, supported by global apparel demand, the country’s competitive position and continued improvements in sustainability and compliance standards.
