Exports slip 0.58% to $48b in FY26 despite June rebound
The country earned $4.20 billion from merchandise exports in June, the final month of the fiscal year, up nearly 26% from the same month last year.
Highlights
- Exports dip 0.58% to $48bn in FY26, missing $55bn target
- June exports surge nearly 26% to $4.2bn
- RMG exports reach $38.7bn despite full-year slowdown
- All top 20 export markets post growth in June
- US remains Bangladesh's largest export destination
- EPB sees June rebound as strong start for FY27
Bangladesh's merchandise exports fell 0.58% year-on-year to $48 billion in FY2025-26, despite a strong June rebound, according to provisional data released by the Export Promotion Bureau (EPB) today (2 July).
The country earned $4.20 billion from merchandise exports in June, the final month of the fiscal year, up nearly 26% from the same month last year, when Bangladesh earned $3.33 billion.
Broad-based growth was recorded across readymade garments (RMG), leather and leather products, jute and jute goods, home textiles, engineering products, and agricultural products, showed EPB data.
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But that late surge was not enough to offset a sluggish first 11 months.
Between July and May, cumulative exports stood at around $43.79 billion, down roughly 2.5% year-on-year, as weakening global demand, geopolitical tensions, and intensifying competition weighed on shipments.
The full-year total falls well short of the government's ambitious $55 billion target for FY2025-26.
Still, June's momentum offers exporters a stronger platform heading into FY2026-27, even as the shortfall underscores persistent headwinds facing the sector.
Total export earnings for the entire FY2024-25 stood at $48.28 billion.
The EPB noted that maintaining earnings near the previous year's level, amid geopolitical tensions, global inflationary pressures, supply chain disruptions, energy market volatility, and subdued consumer demand in key markets, reflects the underlying strength and adaptability of the export sector.
The RMG sector, the mainstay of Bangladesh's export economy, registered 21.52% year-on-year growth in June, earning $3.38 billion against $2.78 billion a year earlier.
Knitwear exports grew by 19.49% while woven garments rose 24.02% during the month. The sector contributed $38.70 billion to overall export earnings in FY26.
Speaking to The Business Standard, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Fazlee Shamim Ehsan said, "The reported 19.49% growth in knitwear and 21.52% growth in apparel exports in June mainly reflects the timing of Eid-ul-Adha. Factories had significantly more working days [25%–30%] than in June 2025, rather than a surge in higher export orders."
He further said, "Despite the positive growth in June, overall knitwear exports in FY2025–26 declined by 2.53% due to weak global demand and insufficient pricing from buyers."
Fazlee added, "This occurred despite significant increases in production costs, including wages [9%], yarn [10%], dyes and chemicals [15%–50%], and energy. As a result, many factories incurred losses or closed, contributing to the country's overall negative export performance."
Several other sectors also posted strong gains. Leather and leather products exports rose 47.68% in June and 7.09% for the fiscal year, reaching $1.23 billion.
Jute and jute goods recorded a 76.60% jump in June and 7.75% growth for the year, totalling $883.69 million.
Home textiles grew 59.95% in June and 6.52% for FY26, while engineering products posted 44.74% growth in June and 21.77% for the fiscal year.
Agricultural products exports rose 46.77% in June, reflecting sustained international demand for Bangladeshi agro-based goods.
On the destination front, the United States remained Bangladesh's largest single-country export market, with earnings of $9.04 billion in FY26, up 4.09% year on year, and strong growth was recorded in June as well.
Germany and the United Kingdom retained their positions as the second and third largest export destinations, respectively, both showing continued positive momentum.
The EPB data further showed that all of Bangladesh's top 20 export destinations recorded positive year-on-year growth in June 2026, pointing to a broad-based recovery in external demand and strengthening market diversification.
The EPB expressed optimism that the positive momentum seen in June, along with continued product and market diversification, will provide a strong foundation for export growth in FY27 and support the country's sustainable economic development.
