A stronger future for Bangladesh’s export economy

For more than forty years, Bangladesh has carried a remarkable story of economic transformation. A country rooted in agriculture built one of the world's most influential apparel industries through grit, discipline and a willingness to learn. The label "Made in Bangladesh" travelled across continents because workers and entrepreneurs believed they could do something bigger than their circumstances. That belief helped reshape the national economy and identity.

But today the landscape looks more uncertain. Export earnings have been falling for four consecutive months, a sign that the long-trusted engine is facing pressure. In November, Bangladesh exported goods worth $3.89 billion, about five and a half percent lower than the same month a year earlier, when the figure was $4.12 billion. According to the Export Promotion Bureau (EPB), almost all major sectors saw declines in November. Apparel, jute, agricultural processed goods, home textiles, non-leather footwear, frozen food and plastics all registered drops. Only leather and leather goods managed to grow. Even apparel, the strongest pillar, was down by five percent.

These shifts are not happening in isolation. Global markets are adjusting to changing tariff regimes, political tensions and evolving consumption patterns. Buyers in key regions are reassessing costs, placing smaller orders and negotiating harder. A combination of price adjustments and softer demand has created a slowdown that is affecting several producing countries, including Bangladesh. This is a reminder that no matter how strong an industry may be, its fortunes can still be shaped by geopolitical forces beyond national control.

This is why the conversation on diversifying the export base feels more urgent than it did a decade ago. Bangladesh cannot rely on a single sector to sustain long-term growth. The apparel industry will remain a cornerstone, but it cannot be the only path to resilience. There are promising alternatives emerging. Plastics and packaging, furniture and light engineering, frozen and processed foods and software and digital services all show real potential. Some Bangladeshi companies in these sectors have already reached international markets, often with little coordinated support. Their progress suggests what is possible if the country takes a more organised approach.

To chart that path, it helps to recall how the apparel sector rose in the first place. In the early years, Bangladesh did not have world-class factories or ready access to buyers. What it did have was ambition and a willingness to build partnerships. Entrepreneurs collaborated with experienced international firms, and groups of young Bangladeshis travelled abroad for hands-on training. They returned with knowledge that reshaped the sector. These early professionals later became managers, production specialists and eventually, for some of them, entrepreneurs. Their learning created the backbone of a national industry.

The principle remains relevant today. Countries rarely diversify by working alone. New sectors grow when skills, technology and market access move across borders through partnerships that are commercially aligned. Bangladesh has the foundation for this model. Universities, institutes and NGOs have long experience in delivering training at scale. Development finance institutions are increasingly interested in supporting sectors that can mature into export industries. IFC and FCDO both came forward in the recent past. What is needed now is focus and coordination.

Diversification works best when a country chooses a few priority sectors and invests with discipline. That means building technical capacity, shaping supportive regulation, reducing friction for exporters and ensuring that early movers have the room to grow. When the focus is clear, industries can mature faster and attract stronger partnerships.

The apparel sector still has room to expand through new materials, automation, sustainability and access to emerging markets. But it cannot remain the only driver of an economy approaching half a trillion dollars. The recent decline in export earnings is not a crisis. It is a signal that the time has come to widen national horizons and move beyond a single engine.

The writer is an economic analyst and chairman at Financial Excellence Ltd