In July, Bangladesh experienced a decrease of almost one percent in its merchandise exports compared to the previous year, primarily due to a slowdown in garment shipments.
The total export value dropped by 0.9 percent to $4.72 billion. Nonetheless, there was a positive turnaround in shipments on a month-on-month basis, surging by 12.49 percent from $4.20 billion in June, as reported by the Export Promotion Bureau (EPB).
Exporters noted signs of recovery in the sector, attributing it to reduced global and domestic business uncertainties. Concerns over US tariffs, tensions related to the Iran conflict, and disruptions from the Russia-Ukraine situation have all eased, contributing to an improved trading environment.
The recent national election had also caused apprehension among international buyers and retailers. However, with the political landscape stabilizing and business conditions returning to normal, there has been a resurgence in work orders placement. Notably, the country’s ready-made garment (RMG) exports saw a slight decline of 1.92 percent year-on-year to $3.88 billion in July, compared to $3.96 billion in the same month last year.
According to Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), July 2025 marked a remarkable period, achieving the highest-ever single-month RMG export earnings in the country’s history.
“Compared to that exceptional milestone, the current figure of $3.88 billion marks a positive beginning for the new fiscal year,” Khan stated.
Woven garment exports experienced the most significant decline, dropping by 3.16 percent year-on-year, while knitwear exports remained relatively stable with a marginal decrease of 0.9 percent.
BGMEA’s Utilisation Declaration (UD) data mirrored this trend, showing a 2.8 percent decrease in UD value in July compared to the same period last year.
Khan highlighted the sector’s resilience in the face of challenges, such as a severe gas shortage impacting production capacity and geopolitical uncertainties affecting global trade and supply chains.
<p“Despite these obstacles, Bangladesh’s RMG sector showcased resilience by surpassing nearly $3.88 billion in exports in a single month,” he added.
The EPB indicated that the RMG sector’s monthly growth recovery has instilled confidence among policymakers in achieving the export targets set for the fiscal year 2026-27.
Based on EPB data, garment exports surged by 14.73 percent month-on-month in July from $3.38 billion in June. However, year-on-year figures declined as global buyers continued adjusting inventories post-pandemic.
The United States retained its position as Bangladesh’s primary export destination, with shipments totaling $918.74 million in July, marking a 0.25 percent increase from the same period last year.
Germany ranked second with exports valued at $495.30 million, followed by the United Kingdom at $478.42 million.
Notably, exports to India and Saudi Arabia witnessed significant growth, increasing by 15.30 percent and 10.64 percent, respectively.
The EPB highlighted robust demand from the US market and a revitalized RMG sector positioning Bangladesh favorably to benefit from upcoming autumn and festive-season orders.
Exporters are actively diversifying their product offerings and exploring new markets to sustain export growth and bridge the annual gap.
While garments remained a key driver, various sectors including plastic goods, leather products, jute items, carpets, home textiles, and non-leather footwear reported positive growth in July. Conversely, sectors like frozen and live fish, agricultural products, and cotton-made items experienced negative growth during the month.
