Exports hit 12-month high in July, but slip nearly 1% Y-o-Y
However, Bangladesh earned $4.72 billion from exports in July, up more than 11% from June's $4.20 billion.
Highlights:
- Most major export sectors outside RMG record growth Y-o-Y
- 0.9% decline in July exports caused by fall in RMG sells
- Apparel exports fall 1.92% to $3.89b in July, down from $3.96b July last year
- Exports rise by more than 12% from June
Bangladesh recorded its highest monthly exports in the past 12 months in July, with shipments totalling $4.72 billion. Despite the strong performance, exports declined 0.9% year-on-year, and exporters caution growth is likely to improve in the months ahead.
Data from the Export Promotion Bureau (EPB), however, show exports rose by more than 12% from June.
Exporters said July is typically the strongest export month as shipments of goods for the upcoming winter season peak during this period, making the higher export value expected.
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They, however, cautioned that export growth is unlikely to improve in the coming months. They cited stagnant global demand for Bangladesh's main export item, ready-made garments (RMG), the country's ongoing energy crisis, and fresh payment-related complications involving leading Polish buyer LPP as major concerns.
An analysis of EPB data shows that Bangladesh exceeded $4 billion in monthly exports four times over the past year. Exports totaled $4.77 billion in July last year.
According to EPB data, most major export sectors outside garments recorded growth in July compared with the same month of the previous fiscal year.
Exports of plastic products rose 1.98%, leather and leather products 2.81%, jute and jute goods 54%, home textiles 14.37%, other footwear 5.52%, and specialised textiles 3%.
Ready-made garments account for more than 80% of Bangladesh's total exports.
Shovon Islam, managing director of Sparrow Group, one of Bangladesh's leading garment exporters with annual exports of around $350 million, told The Business Standard, "Exports are usually higher in July because shipments for the next winter season peak during this period. Large volumes of sweaters, along with woven garments, are exported at this time."
He said this seasonal trend explains the higher export volume in July.
Some exporters said the year-on-year decline, despite record monthly exports, was mainly due to an exceptionally high base last year, when many exporters accelerated shipments to the United States ahead of the implementation of new US tariffs from 7 August. As a result, export growth appears weaker this July despite the strong performance.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) echoed this view in a statement.
According to the BGMEA, Bangladesh's RMG exports fell 1.92% year-on-year to $3.89 billion in July, down from $3.96 billion in July 2025.
"However, it is important to note that July 2025 was an exceptionally strong month, marking the highest single-month export performance in Bangladesh's RMG history. Against that extraordinary base, the current figure of $3.89 billion represents a welcome start to the new fiscal year," the statement said.
BGMEA also noted that the industry is operating amid a severe gas crisis that is limiting production capacity, as well as ongoing geopolitical uncertainties disrupting global trade and supply chains.
Despite these challenges, it said, Bangladesh's RMG sector has remained resilient.
Exporters see little growth before January
Inamul Haq Khan Bablu, senior vice-president of BGMEA and managing director of Ananta Garments, said garment exports are unlikely to grow significantly before December despite July's strong performance.
He attributed this to weak global demand, buyers' concerns over Bangladesh's ability to meet delivery schedules because of the gas shortage, and uncertainty surrounding Polish retailer LPP, which may reduce orders from Bangladesh.
Bangladeshi exporters have alleged that LPP has withheld payment of around $40 million for exports made to Russian buyers through the company. Industry sources said the dispute prompted LPP to suspend new purchase orders from Bangladesh.
"We expect exports to recover from January," Bablu said.
He added that buyers have expressed concern over whether Bangladeshi manufacturers will be able to complete orders on time because of the ongoing gas crisis.
Another exporter, requesting anonymity, said orders could decline further if the energy crisis is not resolved quickly.
Shovon Islam also warned that Bangladesh could lose orders if the gas supply situation does not improve.
"Under the current circumstances, Bangladesh's garment exports are unlikely to grow at least until November," he said.
