STAR BUSINESS REPORT

Readymade garment (RMG) export performance in the coming quarters will largely depend on the pace of economic recovery in major importing countries, stabilisation of global supply chains, and the ability of the sector to diversify products and markets, the Bangladesh Bank (BB) said in a report.

The near-term outlook for the readymade garments industry will remain “cautiously moderate,” reflecting a combination of external demand uncertainty and emerging opportunities in key export markets, according to the “Quarterly Review of Readymade Garments (RMG): October-December of FY26” by the BB.

“Strengthening logistics, enhancing productivity and expanding into higher value apparel segments might be critical for maintaining the competitiveness of Bangladesh in the global garment market,” the BB said.

The RMG sector continued to occupy the dominant share in the export basket of Bangladesh, accounting for 80.36 percent of total export earnings during the October-December period of fiscal year (FY) 2026.

Amid persistent global demand uncertainty, the sector saw a contraction, with earnings reaching $9.74 billion, a 5.99 percent decline from the $10.36 billion recorded during the same period in the previous fiscal year.

Global demand conditions, inflationary pressures in importing countries, shifts in consumer spending patterns, and supply chain adjustments continue to influence order volumes and export receipts, the BB said.

In addition, production costs, exchange rate movements, and logistical conditions play a considerable role in shaping the competitiveness of Bangladesh’s garment exports.

Together, these trends show a large and resilient industry providing the bulk of export earnings and employment, yet facing growing short-term headwinds as it moves into the rest of FY26, the BB added.

Product-wise shares during the second quarter of FY26 showed that among RMG items, the contribution of knitwear exports was 41.88 percent, while woven exports was 38.48 percent.

Among non-RMG items, agricultural products accounted for 4.40 percent, jute goods for 3.35 percent, and leather and leather products for 2.39 percent.

The top destinations for Bangladesh’s RMG exports during October-December of FY26, including the United States, Germany, the United Kingdom, Spain, France, the Netherlands, Italy, Canada, and Belgium, represented a 70.07 percent share.