Bangladeshโs key export sector, the ready-made garment (RMG) industry, is experiencing a sustained decline, raising concerns over its global competitiveness. According to data from the Export Promotion Bureau (EPB), garment exports have been falling for more than eight consecutive months.
Exports to nine of the top ten destination countries have decreased. These include the United States, Germany, the United Kingdom, France, Italy, Canada, Japan, the Netherlands, and Denmark. Only Spain has recorded a slight increase in exports during this period.
Business leaders attribute the decline to rising production costs, gas and electricity shortages, and longer lead times in product delivery. These factors are weakening Bangladeshโs position in the highly competitive global apparel market.
They also noted that competing countries are performing better in garment exports. The downturn reportedly began after the introduction of retaliatory tariffs during the Trump administration, which increased import costs for buyers in the United States and the European Union, leading to reduced purchase orders.
The situation has been further complicated by ongoing conflicts in the Middle East, which have disrupted global trade flows and supply chains, adding additional pressure on the industry.
According to EPB data, Bangladesh earned $28.58 billion from garment exports during JulyโMarch of the 2025โ26 fiscal year. In the same period of the previous fiscal year, earnings stood at $30.24 billion, showing a noticeable decline year-on-year.
Analysts warn that if this trend continues, it could put further strain on the countryโs foreign exchange earnings. They emphasize the need for urgent policy support, stable energy supply, and improved production efficiency to help the sector regain its competitiveness in the global market.
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