Exports shrink for seventh month as February shipments plunge

Infographic: TBS

Bangladesh's export earnings remained in negative territory for the seventh consecutive month, as February shipments fell sharply due to weak global demand and ongoing geopolitical uncertainty.

Exports in February fell sharply to $3.50 billion, down 20.81% from January and 12.03% year-on-year, according to data released by the Export Promotion Bureau (EPB) today (2 March). 

Total exports in the first eight months of FY26 (July-February) declined 3.15% year-on-year to $31.9 billion.

Ready-made garments (RMG), which account for over 80% of the country's export earnings, dropped 3.73% year-on-year to $25.80 billion during the period. 

February alone saw RMG earnings fall 22.1% month-on-month and 13.21% year-on-year, reflecting weaker order flows and shipment volatility. Within the sector, knitwear exports fell 4.56%, while woven garments declined 2.79%.

Experts blame falling US imports on President Trump's tariffs, while aggressive Chinese and Indian exports are undercutting prices in Europe. Weak demand in several countries adds to the strain. 

Export analysts warn that the recent US-Israel strikes on Iran and rising geopolitical uncertainties could prolong the export slowdown.

However, exporters also cited multiple challenges behind the contraction. 

Inamul Haque Khan Bablu, senior vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Business Standard, "Due to Trump's tariffs, US buyers have reduced clothing imports because of uncertainty. Meanwhile, China and India are selling products at lower prices in Europe and other markets, intensifying competition outside the US."

Bablu added that hopes of improvement after Bangladesh's elections have dimmed due to renewed geopolitical tensions, including joint strikes on Iran by the US and Israel.

Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue (CPD), emphasised the need for long-term competitiveness. "Bangladesh must increase productivity, reduce interest rates, stabilise energy prices, and maintain competitive exchange rates to remain relevant in global trade," he said. 

He also urged initiatives to boost exports in non-traditional markets but noted that current war-related uncertainties may continue to weigh on shipments.

Despite the overall slowdown, several non-garment sectors posted positive growth, signalling gradual export diversification.

According to EPB, Engineering products rose 23.42%, led by electrical products (25.91%) and bicycles (27.40%). Ores, slag and ash exports increased 45.40%, pharmaceuticals grew 6.32%, leather products excluding footwear rose 18.32%, and home textiles posted 2.67% growth. Exports of frozen and live fish edged up 3.62% year-on-year.

However, these gains were not large enough in value terms to offset the contraction in garments, leaving overall export growth in negative territory.