The Apparel Digest Report Analysis
In February 2026, Bangladesh’s RMG exports dropped for the seventh consecutive month, bringing in a historic $2.81 billion. While non-RMG industries like engineering, leather, and home textiles saw modest increase, shipments were hampered by weak global demand, US tariffs, election-related disruptions, and growing prices. Recovery could take several months, experts caution.
The merchandise exports of Bangladesh decreased by a record seventh month in February 2026, which underscores increasing strains on the export business in Bangladesh with diminished global demand and geopolitical turmoil. The February earnings were also 12.03 percent lower than that of February 2025, at 3.49 billion and 22.1 percent lower than the previous month, as reported by the Export Promotion Bureau (EPB). The total exports of July-February FY26 were 31.90 billion, 3.15 percent lower than in the previous year.
The readymade garment sector contributes more than 80 percent of national exports continued to be the chief contributor to the fall. RMG shipments in February brought in $2.81 billion and total RMG exports in July-February were at 25.79 billion, a 3.73% decrease compared to the same month the previous year. Within the sector, knitwear exports decreased by 4.56 percent and the woven garments decreased by 2.79 percent.
Mohammad Hatem, president of BKMEA, said that the decrease was caused by buyers withholding orders during the national election and by slow demand and trade tensions in the world market. Former BGMEA president Faruque Hassan said that Bangladesh has never recorded such a long process of negative export growth, and recovery is not expected by May.
It is mentionable that during fiscal year 2024-25, Bangladesh earned US$48.28 billion from exports, driven by US$39.34 billion in RMG earnings.
Causes and Challenges
Exporters identified a number of factors behind the slowdown:
- Poor demand worldwide resulting into a significant reduction in buyer inquiries and orders.
- US tariffs, having decreased imports and moved orders to China and India. Inamul Haque Khan Bablu, BGMEA senior vice president, said, “Due to Trump’s tariffs, US buyers have reduced clothing imports… China and India are selling products at lower prices in Europe, intensifying competition outside the US.”
- Domestic interruptions included approximately 11 holidays in February, such as weekends, religious, national, and election-related days, which reduced working days and shipments
- Increased cost of production, in part due to increased oil prices due to geopolitical tensions.
Geopolitical Risks and Supply Chain Pressure
The current US-Israel-Iran issues might also lead to higher costs and lowered consumer demand. Transportation delays are an issue: war around the Suez Canal can cause ships to bypass the route and go around the Cape of Good Hope, increasing the distance of freight by almost 5,000 kilometers, and increasing transport expenses and insurance. This would eventually impact on Bangladesh global competitiveness according to Masrur Reaz chairman of Policy Exchange Bangladesh.
Non-Garment Growth
Some non-RMG sectors showed resilience, indicating gradual diversification:
- Engineering products: +23.42% (electrical products +25.91%, bicycles +27.40%)
- Leather and leather goods: +4.41%
- Home textiles: +2.67%
- Pharmaceuticals: +6.32%
- Frozen and live fish: +3.62%
- Jute and jute goods: +0.44%
However, agricultural exports decreased by 10.01 percent, and RMG continues to be the industry that has the biggest impact on overall growth.
With modest increase, the US continues to be Bangladesh’s largest market at $5.87 billion, while China is the destination with the quickest rate of growth (+19.12%). Experts caution that the export slump may last longer due to ongoing global uncertainty and competitive constraints.
To help the industry overcome present challenges, industry executives stress that exporters should receive immediate cash support and soft loans in addition to long-term changes like productivity development, energy price stability, and exchange rate competitiveness.
Although the non-garment growth has given hope, the RMG sector is still experiencing headwinds and recovery will probably take several months amid global and domestic uncertainties.
Impact and Outlook:
- Overall Export Decline: Total merchandise exports for the first eight months of FY26 fell 3.15% to $31.90 billion.
- Cautious Outlook: Exporters warn that the negative trend might continue for several more months until global demand stabilizes, urging for market diversification beyond the traditional EU and US destinations.
This is a critical juncture of Bangladesh apparel sector; indeed unprecedented for Bangladesh apparel sector that has been experiencing growth for decades. Unless proactive measures and actions are initiated by both the government and private sector, it is apprehended that the sector which is called as one of the economic lifeline of Bangladesh, would lose its momentum to grow but decline!
