Bangladesh’s garment shipments fell 2.63 percent year-on-year in the first half of the current fiscal year, adding pressure on the country’s largest export-earning sector amid subdued global demand and persistent uncertainty in key markets.
According to data from the Export Promotion Bureau (EPB), garment exports stood at $19.37 billion during the July–December period of FY26, down from $19.88 billion in the corresponding period of the previous fiscal year.
Of the total earnings, knitwear exports amounted to $10.49 billion, registering a 3.22 percent year-on-year decline, while woven garment exports slipped by 1.91 percent to $8.88 billion.
The slowdown became more pronounced in December last year, when garment exports dropped sharply by 14.23 percent year-on-year to $3.23 billion. Bangladesh had exported apparel worth $3.77 billion in December 2024.
Category-wise, knitwear exports in December stood at $1.63 billion, down 13.74 percent from a year earlier, while woven garment shipments declined by 14.71 percent to $1.60 billion.
However, month-on-month data indicates a modest improvement. Apparel exports rose in December compared to November 2025, when shipments totalled $3.14 billion.
December’s performance was the second-highest monthly export figure so far in the current fiscal year, following July, when exports reached $3.96 billion.
Industry insiders attributed the year-on-year decline to cautious buying by global retailers, inventory adjustments in major markets, and rising cost pressures, although signs of gradual recovery are emerging in month-on-month trends.
Rezwan Selim, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told TIMES that global instability has significantly affected demand, as end consumers in major markets have reduced clothing expenditure.
“However, we are hopeful that apparel exports will improve in the next quarter, as the volume of orders has started to increase,” he said.
Industry data show that nearly 70 percent of Bangladesh’s garment exports consist of basic items, making the sector particularly vulnerable to demand fluctuations in the lower-end market segment.
Sovon Islam, managing director of Sparrow Group, told TIMES that although sales in the US market increased by 5 percent last month, overall demand for basic apparel has weakened due to ongoing global uncertainty.
“Bangladesh’s garment exports are heavily dependent on basic products, which is why overall export growth has remained sluggish,” he said.
Islam also said that importers dealing mainly in basic garments are currently facing liquidity constraints for various reasons.
However, buyers who source finished apparel directly have continued to place orders at a relatively stable level. As a result, large garment factories have not experienced any major disruption to their export performance.
He further said that in the past, successive governments had provided support when the export sector faced difficulties.
“But the current government has so far not extended any meaningful assistance to the garment sector,” he added.
Due to the absence of policy support, small and medium-sized factories are struggling with liquidity shortages and are unable to secure new orders, which is putting additional pressure on the overall export sector.
