Exports plummet in May, hit ready-made garment sector too

BD Digest Desk

Bangladesh’s export sector has once again shown a negative trend after just one month. Although exports returned to growth in April after a prolonged downturn, that momentum could not be maintained in May. Instead, export earnings fell by 7 percent compared to the same period a year earlier.

The development has renewed concerns about the future of the export sector, one of the country’s key drivers of foreign trade and economic growth.

According to the latest report published by the Export Promotion Bureau (EPB) on Wednesday, Bangladesh exported goods worth a total of $4.40 billion in May 2026. In the same month of 2025, exports totaled $4.7379 billion.

As a result, export earnings declined by nearly 7 percent year-on-year.

A significant decline was also recorded in the country’s leading export sector, the ready-made garment industry. In May, garment exports fell 8.29 percent from the same period a year earlier, dropping to $3.59 billion.

The garment sector accounts for the largest share of Bangladesh’s export earnings. Consequently, the negative trend in this sector had a direct impact on overall export income.

The export situation has also been less than satisfactory during the first 11 months of the 2025-26 fiscal year, from July through May. Due to a decline in ready-made garment shipments, the country’s total export earnings fell by nearly 2.5 percent during the period. Total exports in the first 11 months of the fiscal year stood at $43.80 billion.

Prior to this, Bangladesh’s export sector had experienced negative growth for eight consecutive months. After overcoming that prolonged slump, the increase in export earnings in April 2026 had generated optimism among economists and business leaders.

It was widely expected that the sector would gradually recover through increased demand in international markets and improvements in export activities. However, the May figures have dealt a significant blow to that optimism.

According to analysts, factors such as global economic uncertainty, fluctuations in demand in key markets, changes in the international trade environment, and a decline in garment orders may be affecting export growth.

In particular, if the negative trend in the ready-made garment sector continues, overall export earnings could come under even greater pressure.

The export sector remains one of Bangladesh’s primary sources of foreign currency earnings. As a result, restoring the sector to a path of positive growth has emerged as a major challenge for the government’s economic management and policymakers.

Efforts to revive export earnings are increasingly focused on market diversification, attracting new buyers, increasing production capacity, and maintaining competitiveness in the global marketplace.

Following the temporary relief seen in April, the renewed decline in export earnings in May suggests that Bangladesh’s export sector has not yet reached a stable path to recovery. Business leaders, investors, and policymakers will be closely watching export performance in the coming months to see which direction the sector takes.