The central bank, however, cautioned that the sector faces rising production costs and stiffer competition from rival exporting countries amid persistent global economic uncertainty and geopolitical tensions.
Bangladesh’s RMG exports rose by 11 per cent YoY to $10.10 billion during Q4 FY26, the Bangladesh Bank’s quarterly review of the sector said.
The central bank cautioned that the sector faces rising production costs and stiffer competition from rival exporting countries amid persistent global economic uncertainty and geopolitical tensions.
The near-term outlook for the sector is moderately positive.
“Going forward, export diversification, value-added production and enhanced productivity will be crucial for sustaining growth and strengthening the resilience of the RMG industry,” the review said.
The RMG sector’s net exports, determined by subtracting raw material import value from export value, rose to 62 per cent during Q4 FY26. The growth rate was 57 per cent during the same period a year ago.
Nine countries, including the United Kingdom, the United States, Germany, Spain and the Netherlands, were the top destinations for RMG exports during the quarter, together accounting for $7.24 billion, or 72 per cent, of total RMG exports.
The total apparel export earnings for FY26 stood at $38.97 billion, up by 1 per cent YoY.
The RMG sector’s share of Bangladesh’s nominal gross domestic product in FY26 declined to 7.82 per cent from 8.52 per cent the previous fiscal.
Knitwear exports rose by 10 per cent YoY in Q4 FY26.
The modest growth recorded in the fourth quarter of FY26 stemmed partly from base effects and shipment timing rather than a sustained improvement in underlying global demand, the review report noted.
“Weak demand in the European Union posed a major constraint for Bangladesh, due to lower apparel demand and increased competition from rival suppliers,” it added.
The near-term outlook for the RMG industry remains moderately positive, supported by global apparel demand, competitive position in the international market and continued improvements in sustainability and compliance standards.
Fibre2Fashion News Desk (DS)
