Exports dip nearly 1% in July

Bangladesh’s merchandise exports declined by nearly one percent year-on-year in July, the first month of the current fiscal year, due to a sluggish performance in garment shipments.

The export figure fell 0.9 percent to $4.72 billion. However, shipments recovered month-on-month, rising 12.49 percent from $4.20 billion in June, according to data released by the Export Promotion Bureau (EPB) yesterday.

Tap here to add The Daily Star as a trusted source

Exporters said the sector is showing early signs of recovery as uncertainty in the global and domestic business environment has eased. Concerns over US tariffs have reduced, tensions related to the Iran war have declined, and the Russia-Ukraine conflict is creating fewer disruptions for global trade.

The national election was also a concern for international buyers and retailers. With political uncertainty easing and business conditions returning to normal, buyers have started placing more work orders, they said. The country’s readymade garment (RMG) exports fell 1.92 percent year-on-year to $3.88 billion in July, compared with $3.96 billion in the same month last year.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said July 2025 was an exceptional month, recording the highest-ever single-month RMG export earnings in Bangladesh’s history.

“Against that extraordinary base, the current figure of $3.88 billion represents a welcome start to the new fiscal year,” he said in a statement.

He said woven garment exports faced the largest decline, falling 3.16 percent year-on-year, while knitwear exports remained relatively stable with a decline of 0.9 percent.

BGMEA’s Utilisation Declaration (UD) data showed a similar trend, with UD value declining 2.8 percent in July compared with the same month last year.

Mahmud said the performance came despite major challenges, including a severe gas shortage that reduced production capacity utilisation and geopolitical uncertainties affecting global trade and supply chains.

“Despite these headwinds, Bangladesh’s RMG sector has demonstrated resilience by crossing nearly $3.88 billion in exports in a single month,” he added.

The EPB said the RMG sector’s monthly growth recovery has boosted policymakers’ confidence in achieving the export targets set for fiscal year 2026-27.

According to EPB data, garment exports rose 14.73 percent month-on-month in July from $3.38 billion in June. However, they fell year-on-year as global buyers continued adjusting inventories after the pandemic.

The United States remained Bangladesh’s largest export destination, with shipments reaching $918.74 million in July, up 0.25 percent from the same period last year.

Germany ranked second with exports worth $495.30 million, followed by the United Kingdom at $478.42 million.

Among major markets, exports to India and Saudi Arabia recorded the highest growth, rising 15.30 percent and 10.64 percent respectively.

The EPB said strong demand from the US market and renewed momentum in the RMG sector have placed Bangladesh in a favourable position to benefit from upcoming autumn and festive-season orders.

Exporters are also working to reduce the yearly gap by launching new products and exploring non-traditional markets to maintain export growth, it added.

Besides garments, several sectors recorded positive growth in July, including plastic goods, leather and leather products, jute and jute products, carpets, home textiles and non-leather footwear.

However, some potential growth sectors, including frozen and live fish, agricultural products and cotton-made items, recorded negative growth during the month.