Foreseeing a ‘cautiously moderate’ near-term outlook for the RMG industry, Bangladesh Bank (BB) projected a combination of external demand uncertainty and emerging opportunities in key export markets.
Bangladesh’s RMG exports performance in the next few quarters will depend on the pace of economic recovery in major buying nations, stabilisation of global supply chains and the sector’s ability to diversify products and markets, the central bank noted.
Foreseeing a ‘cautiously moderate’ near-term outlook for the sector, it projected external demand uncertainty and emerging opportunities in key markets.
“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 bank’s ‘Quarterly Review of Readymade Garments (RMG): October-December of FY26’ noted.
The sector continued to occupy the dominant share in the country’s export basket, accounting for 80.36 per cent of total export earnings during the October-December period of fiscal 2025-26 (FY26).
Amid continuing demand uncertainty globally, the sector contracted during the quarter, with earnings reaching $9.74 billion, a 5.99 per cent year-on-year (YoY) decline.
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 bank observed.
In addition, production costs, exchange rate movements, and logistical conditions play a considerable role in shaping the competitiveness of Bangladesh’s garment exports.
These show a large and resilient industry providing the bulk of export earnings and employment facing growing short-term headwinds as it moves into the rest of FY26, the bank added.
Fibre2Fashion News Desk (DS)
