Bangladesh RMG exports FY26 reached $16.13 billion from July to November, a mere 0.09 per cent increase from the prior year, according to Export Promotion Bureau data released on Thursday. This slowdown stems from weakened demand in key markets like the US and EU. The Export Promotion Bureau, the government’s trade monitoring body, confirmed the figures on Friday, December 05, 2025. Officials attribute the trend to inflation and tariffs, with knitwear exports dropping 1 per cent to $8.86 billion.
This stagnation in Bangladesh RMG exports FY26 underscores vulnerabilities in South Asia’s largest manufacturing hub, where garments account for over 80 per cent of total exports. A prolonged dip risks job losses for four million workers and strains foreign reserves, already hit by energy costs and regional competition from India and Vietnam. For neighbouring economies, it highlights shared risks from US policy changes under the Trump administration, potentially curbing intra-regional trade flows and investment in textile supply chains.
RMG Export Decline Bangladesh: Key Figures from July-November
The Export Promotion Bureau data shows Bangladesh RMG exports FY26 totalled $16.13 billion for July to November. This marks a 0.09 per cent rise from $16.11 billion in the same period of FY25. Knitwear led the RMG export decline Bangladesh, falling 1 per cent to $8.86 billion. Woven garments bucked the trend, rising 1.44 per cent to $7.28 billion.
November alone saw sharper contraction. Exports dropped 5 per cent to $3.14 billion from $3.30 billion the previous November. Knitwear shipments plunged 6.89 per cent to $1.62 billion, while woven fell 2.90 per cent to $1.52 billion. The Export Promotion Bureau attributes this to seasonal weakness in winter apparel demand.
Broader merchandise exports grew modestly to $20.02 billion, up 0.62 per cent year-on-year. Non-RMG sectors provided some buffer. Home textiles rose 5.68 per cent to $345.40 million. Leather and leather goods increased 9.88 per cent to $512 million. Jute and jute goods edged up 1.36 per cent to $346 million.
The Bangladesh Garment Manufacturers and Exporters Association has flagged these trends. In a statement to The Business Standard on November 18, 2025, BGMEA Vice President Md Shehab Udduza Chowdhury said: “The main reason for the decline in Bangladesh’s exports to the US market is the new 20 per cent reciprocal tariff on our products, which has led to market contraction.” He noted total RMG shipments to the US from July to October reached $2.59 billion, up 5.14 per cent overall but down 2.88 per cent from August to October.
Earlier data from the first quarter offered glimmers of Bangladesh garment exports growth. July-September RMG exports hit $9.97 billion, up 4.79 per cent. The EU took 47.60 per cent at $4.75 billion, with US growth at 8.60 per cent. Knitwear grew 4.31 per cent, woven 5.41 per cent. Yet, October and November reversed gains, pulling the five-month average flat.
Factors Driving the RMG Export Decline Bangladesh
Global headwinds dominate the RMG export decline Bangladesh. Weak consumer demand in the EU, US, and UK persists from last year, especially for knitwear winter items. High inflation in these markets curbs clothing purchases. Retailers place smaller, cautious orders amid economic uncertainty.
US trade policies exacerbate the issue. The Trump administration’s 20 per cent reciprocal tariffs, effective since August 2025, hit Bangladesh hard. Exporters now face an average 36.5 per cent duty burden, including the new levy. BGMEA Senior Vice President Inamul Haq Khan Bablu told The Business Standard on October 05, 2025: “US apparel orders to Bangladesh have decreased rather than increased. US consumer spending has slowed due to the high tariff. Clothing consumption is declining, and buyers are not placing new orders.”
Supply chain costs add pressure. Foreign exchange shortages raise raw material prices. Unstable freight rates inflate production expenses. Cash flow issues limit order acceptance. Bangladesh Bank data for July-September shows RMG imports of $3.84 billion in raw materials, or 38.66 per cent of export value, leaving net exports at $6.08 billion.
Competition intensifies from rivals. Vietnam, India, Turkey, and Indonesia roll out incentives for EU and US markets. Bangladesh risks losing share without countermeasures. Political strains with India contributed too. RMG exports to India fell 5.26 per cent to $26.58 crore in July-October, per Export Promotion Bureau figures.
Mohiuddin Rubel, managing director of Bangladesh Apparel Exchange and former BGMEA director, warned in a December 04, 2025, interview with Dhaka Tribune: “Bangladesh has maintained its position despite fluctuations in demand in the global market. However, the decline in orders in the knitwear sector is giving us a clear warning, without new markets, new products, and technology investments, it will be difficult to sustain growth in the future.”
The Export Promotion Bureau echoes this in its July-November review. It states: “Despite year-on-year fluctuations, the continued month-on-month growth and strong performance across major sectors underscore the resilience, competitiveness, and positive outlook for Bangladesh’s export industries in the global market.”
Background: Resilience Amid Past Gains
Bangladesh RMG exports FY26 build on FY25’s $39.35 billion total, up 8.90 per cent from $36.13 billion in FY24, per Bangladesh Bank. The sector contributes 8.52 per cent to nominal GDP. It employs four million, mostly women, fuelling poverty reduction in rural areas.
Post-2024 political shifts stabilised operations. Factory upgrades and green initiatives cut costs. Large-scale production keeps prices competitive. Yet, FY26’s flat start recalls 2023’s disruptions from energy crises and global slowdowns.
South Asia benefits from Bangladesh’s scale. It supplies 10 per cent of global apparel, easing pressure on India’s textile dominance. But shared challenges like US tariffs threaten the $100 billion regional trade bloc.
What’s Next for Bangladesh RMG Exports FY26
Recovery hinges on diversification. Exporters eye Latin America and Eastern Europe for new markets. High-value products like sustainable fabrics could lift Bangladesh garment exports growth. Government pledges lower logistics costs and tech upgrades.
The global economy may weaken further in coming months. EPB data suggests rebound depends on buyer power and tariff easing. Prolonged stagnation could halt investments. BGMEA urges policy talks with US and EU forums.
Bangladesh RMG exports FY26 must adapt swiftly to secure the $63.5 billion annual target set by the commerce ministry.
Published in SouthAsianDesk, December 5th, 2025
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