REFAYET ULLAH MIRDHA

Bangladesh’s merchandise export earnings fell for the eighth consecutive month in March, dropping 18 percent year-on-year (YoY) to $3.48 billion, largely owing to long Eid holidays and a turbulent global economy that continued to weigh on trade performance.

The decline was driven by garment exports, which account for more than 80 percent of national export earnings. Earnings from the sector fell 19.35 percent YoY to $2.78 billion in March, according to data from the Export Promotion Bureau (EPB) released yesterday.

For the first nine months of the current fiscal year, July–March, overall export earnings contracted 4.85 percent to $35.38 billion compared to $37.19 billion in the same period of the previous fiscal year.

EPB data shows that garment exports during the period declined 5.51 percent to $28.57 billion compared to a year ago. Knitwear was down 6.42 percent to $15.11 billion and woven 4.48 percent to $13.46 billion.

On a month-on-month basis, however, overall export earnings in March were only 0.42 percent below February’s $3.5 billion.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), attributed the sustained downturn to US reciprocal tariffs, headwinds caused by the US-Israel war on Iran, and February’s general election.

He said factory output was also hit by extended public holidays during Eid.

Khan said, “Buyers had begun regaining confidence after the February election and started placing fresh orders, but the US-Israel war on Iran had since disrupted that recovery, seriously affecting export prospects.”

“A rebound in global apparel markets would depend largely on how that conflict develops,” he added.

Some domestic issues also impacted the export and production of garments at the factory level. “For instance, in February, the production at the factories was affected due to long public holidays because of the election.”

According to EPB, among major export categories, most recorded negative growth year-on-year. Exceptions were frozen and live fish, leather and leather goods, and engineering products, all of which posted gains.

Despite the decline, the export volume remains substantial, underscoring the sector’s underlying strength amid ongoing global economic adjustments, the EPB said.