June exports rebound, but FY26 earnings edge down to $48b

Infographics: TBS

Highlights

• Exports dip 0.58% to $48bn in FY26, missing $55bn target
• June exports surge nearly 26% to $4.2bn
• RMG exports reach $38.7bn despite full-year slowdown
• All top 20 export markets post growth in June
• US remains Bangladesh's largest export destination
• EPB sees June rebound as strong start for FY27

Bangladesh's merchandise exports rebounded strongly in June, rising nearly 26% year-on-year to $4.20 billion, although the late surge was not enough to prevent a slight decline in overall export earnings for FY2025-26, according to provisional data released by the Export Promotion Bureau (EPB) today (2 July).

The country earned $48 billion from merchandise exports during the fiscal year, down 0.58% from $48.28 billion in FY25.

The RMG sector, the mainstay of Bangladesh's export economy, registered 21.52% year-on-year growth in June, earning $3.38 billion, compared with $2.78 billion a year earlier. Knitwear exports grew by 19.49%, while woven garment exports rose by 24.02% during the month.

The sector generated $38.70 billion in export earnings in FY26, accounting for more than 80% of the country's total merchandise exports.

However, EPB data showed that annual RMG exports declined by 1.64% compared with FY25.

Exporters attributed the sharp increase in June exports partly to a low base effect.

According to them, exports were weaker in June last year because of the extended Eid-ul-Adha holidays. This year, most of the Eid holidays fell in May, reducing the impact on June exports and making year-on-year growth appear stronger.

Regarding the slowdown, they cited the United States' reciprocal tariffs, intensifying competition in European markets, weak global demand and reduced purchase orders from international buyers ahead of the country's national election as the main factors behind the decline in exports during the fiscal year.

Mahmud Hasan Khan Babu, president of the BGMEA, told The Business Standard, "Besides the country's energy shortages, high interest rates and weaknesses in logistics, Bangladesh will face further challenges because of the free trade agreements between the European Union and India and Vietnam."

"However, if the domestic challenges can be addressed, the country's exports will perform better in the new fiscal year than in the previous one," he added.

Fazlee Shamim Ehsan, executive president of the BKMEA and president of the Bangladesh Employers' Federation (BEF), echoed similar concerns.

He told TBS, "From next January, India and Vietnam will be able to export to the European market duty-free under their free trade agreements with the EU. At present, Indian products face tariffs of around 10%. This will create a new challenge for Bangladesh in the European market."

Despite this, he said he expects Bangladesh's garment exports to increase from September.

Broad-based growth across sectors

According to EPB data, during the last month of FY26, broad-based growth was recorded across ready-made garments, leather and leather products, jute and jute goods, home textiles, engineering products and agricultural products.

But, the late surge was not enough to offset a sluggish first 11 months of the fiscal year.

Between July and May, cumulative exports stood at around $43.79 billion, down roughly 2.5% year-on-year, as weakening global demand, geopolitical tensions and intensifying competition weighed on shipments.

The full-year export total also fell well short of the government's $55 billion target for FY2025–26.

Among the other sectors posting strong gains in June, exports of leather and leather products increased 47.68% year on year during the month and 7.09% over the full fiscal year, reaching $1.23 billion.

Jute and jute goods recorded a 76.60% increase in June and 7.75% growth for the year, with exports totalling $883.69 million.

Home textile exports grew 59.95% in June and 6.52% in FY26, while engineering products recorded 44.74% growth in June and 21.77% over the fiscal year.

Agricultural product exports rose 46.77% in June, reflecting sustained international demand for Bangladeshi agro-based goods.

US remains largest export market

On the destination front, the United States remained Bangladesh's largest single-country export market, with export earnings of $9.04 billion in FY26, up 4.09% year on year. Strong growth was also recorded in June.

Germany and the United Kingdom retained their positions as the second and third-largest export destinations respectively, with both markets maintaining positive momentum.

EPB data also showed that Bangladesh's top 20 export destinations all recorded positive year-on-year growth in June 2026, indicating a broad-based recovery in external demand and continued market diversification.

The EPB said the positive momentum seen in June, alongside continued product and market diversification, could provide a stronger foundation for export growth in FY2026-27 and support the country's sustainable economic development.