Non-RMG exports grow but RMG slowdown keeps Bangladesh exports flat

Bangladesh's export earnings remained largely stagnant in the first seven months of the current fiscal year, as a sustained slowdown in garment shipments continued to outweigh incremental gains in non-RMG sectors, underlining the economy's enduring dependence on a single export pillar.

According to data from the Export Promotion Bureau (EPB), exports during July-January FY26 stood at $28.41 billion, registering a 1.93% year-on-year decline, even as shipments rebounded 11.2% month-on-month in January.

Earnings stood at over $4.41 billion in the past month, up from $3.97 billion in December 2025, reflecting a double-digit month-on-month growth.

However, during the July-January period of FY2025-26, total exports amounted to $28.41 billion, compared to $28.97 billion in the same period of the previous fiscal year of 2024-25, highlighting the impact of prevailing global trade conditions on Bangladesh's export performance.

Readymade garments, which account for about 81% of Bangladesh's export basket, recorded a 2.43% year-on-year fall during the period, exerting downward pressure on overall export performance despite moderate growth in several non-RMG segments, including engineering products, leather goods, jute items and home textiles.

Export earnings from the RMG sector amounted to $22.98 billion in the July-January period, down from a year earlier. Within the segment, knitwear exports declined by 3.13%, while woven garment shipments fell 1.60%, reflecting weak demand and continued price pressures in major markets.

In contrast, non-RMG exports posted relatively stronger growth, though from a much smaller base. 

EPB data show that engineering product exports rose by nearly 26%, driven by sharp increases in bicycle exports (31%) and electrical products (26.8%). 

Exports of leather and leather goods increased 5.7%, while home textile shipments grew 3.3% and jute and jute goods exports edged up by just over 2% during the period.

EPB said the readymade garments (RMG) sector continued to demonstrate its strong and dominant position, registering a growth of 11.77% over the previous year, indicating sustained global demand and enhanced competitiveness.

Performance among the top six export sectors excluding RMG – leather and leather goods, jute and jute goods, agro and agro-processed products, home textiles, light engineering, and frozen fish – remained mixed, with both positive and negative trends observed.

Notably, leather and leather goods, jute and jute goods, home textiles, plastic and plastic goods, and light engineering products posted growth on both a year-on-year and month-on-month basis, said the EPB.

Among major export destinations during July-January of FY26, the United States retained its position as Bangladesh's largest export market, with exports totaling $5.22 billion.