Export growth in the country continues to decline and has entered negative territory

In the first half of the current fiscal year (July–December), the country’s export sector has faced negative growth. According to statistics published by the Export Promotion Bureau (EPB), exports worth USD 23.99 billion were made in the first six months of the 2025–26 fiscal year, compared to USD 24.53 billion during the same period of the previous fiscal year. As a result, exports declined by 2.19 percent.

In July, export growth was positive at 24.9 percent. However, from August to December, the export sector experienced negative growth for five consecutive months. In December alone, exports declined by 14.25 percent. Compared to December last year, the ready-made garment sector recorded a decline of 14.23 percent.

Multiple factors and impacts are behind this negative growth, which has slowed down the economy. Following the July unrest, deterioration in the law and order situation and a slowdown in investment have weakened the economy. In addition, the imposition of retaliatory tariffs in the US and European markets has affected Bangladesh’s exports. Competing countries such as China and India are exporting goods to Europe at lower prices, causing Bangladesh to lose market share. Added to this is the government’s withdrawal of cash incentives for the export sector, which has put additional pressure on exporters.

Sector-wise data shows that the ready-made garment sector has suffered the biggest blow. In the first six months, exports from this sector declined by 2.63 percent. Within this, knitwear exports decreased by 3.22 percent and woven garments by 1.91 percent. Agricultural product exports declined by 10.30 percent, manufactured goods by 2.05 percent, wood products by 33.33 percent, handicrafts by 15.34 percent, cotton products by 16.03 percent, and plastic products by 8.83 percent.

However, some sectors recorded positive growth. Leather and leather goods grew by 5.61 percent, jute and jute goods by 0.31 percent, and engineering products recorded a significant growth of 26.17 percent.

The EPB and business associations hope that once a new government takes office after the election, foreign buyers’ confidence will be restored and investment will increase. As a result, exports may return to a positive growth trend.