Bangladesh’s merchandise exports extended their downward trajectory in February 2026, marking the seventh consecutive month of year-on-year decline amid weakening global demand, geopolitical tensions and intensifying competition in key markets.
According to the latest data released by the Export Promotion Bureau (EPB), single-month export earnings in February fell 12.03 percent year-on-year to $3.49 billion, down from $3.97 billion in the same month of 2025.
The prolonged contraction highlights continued pressure on the country’s external trade sector, particularly the readymade garment (RMG) industry, which accounts for the lion’s share of export income.
Eight-month performance remains negative
During the July–February period of fiscal year 2025–26, total export earnings stood at $31.90 billion, reflecting a 3.15% decline compared to $32.94 billion in the corresponding period of the previous fiscal year.
Exports first slipped into negative territory in August 2025, registering a 2.93% fall. The downturn then deepened with contractions of 4.61% in September, 7.43% in October, 5.58% in November, 14.25% in December and 0.50% in January, before February’s sharper decline.
RMG continues to contract
RMG exports — the backbone of Bangladesh’s export economy — generated $2.81 billion in February, representing a 13.21% year-on-year fall.
Over the first eight months of the current fiscal year, RMG earnings reached $25.79 billion, but still recorded a 3.73% negative growth compared to the same period last year.
Within the apparel segment, knitwear exports declined 4.56% to $13.68 billion, while woven garments fell 2.79% to $12.10 billion, EPB data showed.
Industry insiders said the relatively resilient performance in July was followed by a steady slowdown from August, reflecting mounting global headwinds and shifting sourcing strategies among international buyers.
External pressures mount
Exporters attribute the slump to subdued global consumer demand, reciprocal tariff measures by the United States and China’s intensified focus on markets where Bangladesh competes strongly.
They also cited aggressive price competition from regional rivals such as China and India, rising production costs, and broader geopolitical uncertainties — including ongoing fallout from the Russia-Ukraine conflict and renewed tensions involving Iran — as factors dampening global trade sentiment.
EPB, however, described the decline as partly driven by temporary factors such as port disruptions, the national election cycle and softer demand in key destination markets.
Despite the overall downturn, several smaller sectors including leather and leather goods, jute and jute goods, home textiles, light engineering and frozen fish recorded positive year-on-year growth in February, suggesting gradual diversification within the export basket.
