Bangladesh’s merchandise exports have continued their downward slide, declining for the seventh consecutive month in February, raising fresh concerns about the country’s external trade outlook amid growing geopolitical uncertainty.
According to the latest data released Monday by the Export Promotion Bureau (EPB), the country exported goods worth $3.5 billion in February, marking a 12 percent decline compared to the same month last year.
With February’s contraction, overall merchandise exports during the first eight months (July-February) of the current 2025-26 fiscal year fell by 3.15 percent year-on-year. During this period, total export earnings stood at $31.91 billion, equivalent to approximately Tk 3.89 lakh crore in local currency.
Key Sectors Under Pressure: Data show that exports declined across several major sectors last month, including ready-made garments (RMG), leather and leather goods, agro-processed products, jute and jute goods, home textiles, and non-leather footwear. However, engineering products and plastic goods recorded positive growth, partially offsetting the broader downturn. Trade analysts say the negative export trend reflects both weakening global demand and heightened uncertainty in key markets.
A senior official at the EPB told The Daily Industry, “The continued contraction in exports is concerning. While some sectors are showing resilience, the overall performance indicates persistent structural and external challenges.”
Garment Exports Hit Monthly Low: The ready-made garment sector, which accounts for the majority of Bangladesh’s exports, recorded its lowest monthly earnings of the current fiscal year in February.
Garment exports totaled $2.82 billion last month, down from over $3 billion in most previous months. In comparison, $2.84 billion worth of RMG products were exported in February of the previous fiscal year.
Overall, during July-February of FY2025-26, garment exports stood at $25.8 billion, reflecting a 3.73 percent decline year-on-year.
Industry insiders warn that falling orders, cautious buyers, and shipment disruptions are contributing to the slowdown.
An exporter based in Chattogram told The Daily Industry, “Buyers are placing smaller orders and negotiating harder on prices. Global demand remains fragile, and uncertainty in the Middle East has added new risks.”
Leather Sector Shows Mixed Picture: Bangladesh’s second-largest export sector-leather and leather goods-also experienced a decline in February. The country exported $83.7 million worth of leather products during the month, down 5.44 percent compared to the same month a year earlier.
Despite the February dip, cumulative leather exports for the first eight months of the fiscal year reached $790 million, posting a 4.41 percent increase over the corresponding period of the previous year.
Sector representatives say seasonal fluctuations and shipment timing partly explain the mixed performance, but sustained growth will depend on market diversification and improved compliance standards.
Geopolitical Risks Add Fresh Uncertainty: Exporters are also increasingly worried about escalating tensions in the Middle East following joint military strikes by the United States and Israel on Iran, which have raised fears of a broader regional conflict.
Business leaders say prolonged instability in the region could disrupt shipping routes, increase freight costs, and dampen demand in Gulf markets-an important destination for Bangladeshi goods.
“If conflict spreads across the Middle East, it will create fresh pressure on exports,” a leading garment exporter said. “We are already seeing some delays and shipment disruptions.”
Port Activity Reflects Slowdown: Chattogram Port, through which the majority of Bangladesh’s imports and exports are handled, has also seen fluctuations in container handling volumes in recent months, reflecting softer trade flows.
Economists argue that reversing the negative export trend will require restoring buyer confidence, diversifying markets, and addressing domestic challenges such as energy supply constraints and high production costs.
An economist told The Daily Industry, “Export recovery will depend on global demand stabilization and improved competitiveness at home. Without structural reforms, temporary gains in a few sectors will not be enough.” With seven straight months of contraction, Bangladesh’s export sector now faces mounting pressure to regain momentum in the final quarter of the fiscal year.
