Bangladesh’s export earnings declined by 7.09 percent year-on-year in May 2026, reflecting continued weakness in the country’s key ready-made garment (RMG) sector amid persistent domestic and global economic challenges.
According to data released by the Export Promotion Bureau (EPB) on Wednesday, export receipts stood at $4.40 billion in May, down from $4.73 billion in the same month a year earlier.
The decline also weighed on overall export performance during the first eleven months (July–May) of fiscal year 2025–26. Total export earnings fell by 2.55 percent to $43.79 billion, compared with $44.94 billion in the corresponding period of the previous fiscal year.
The RMG sector, which contributes more than 80 percent of Bangladesh’s export earnings, remained the main drag on overall performance.
Apparel exports dropped by 8.29 percent year-on-year to $3.59 billion in May from $3.91 billion a year earlier.
During the July–May period, cumulative RMG exports declined by 3.41 percent to $35.31 billion, compared with $36.56 billion in the same period of FY2024–25.
Industry stakeholders attributed the slowdown to a combination of domestic and external factors, including energy shortages, higher production costs, elevated gas prices, weak consumer demand in key export markets and cautious purchasing by global retailers.
Despite the annual decline, export earnings posted a month-on-month recovery in May.
Total exports rose by 9.8 percent from April’s $4.0 billion, while apparel shipments increased by 14.43 percent from $3.14 billion recorded in the previous month.
Meanwhile, several non-traditional export sectors registered positive growth, offering some support to the overall export basket.
Pharmaceuticals, plastics, jute and jute goods, printed materials, home textiles and engineering products recorded notable gains during the period. Exports of leather goods, fresh fruits and crabs also increased, indicating gradual progress in export diversification efforts.
The data also showed encouraging performance in several overseas markets. While demand remained subdued in parts of Europe, exports to the United States posted growth during the July–May period.
Bangladesh also strengthened its position in a number of emerging and secondary markets, including Spain, the Netherlands, Poland, Canada, China, the United Arab Emirates and Saudi Arabia.