Export earnings drop 7.43% in October amid weak global demand

Bangladesh’s export earnings fell sharply in October 2025, dropping 7.43 per cent to $3.82 billion from $4.13 billion in September, according to the latest data released by the Export Promotion Bureau (EPB) on Monday, November 3.

Despite the monthly fall, total export receipts in the first four months (July–October) of the current fiscal year 2025–26 rose slightly by 2.22 per cent year-on-year, reaching $16.14 billion, compared to $15.8 billion in the same period of FY 2024–25.

Exporters, however, warn that the slowdown in recent months—particularly in August, September, and October—reflects both seasonal factors and external pressures such as reduced global orders, higher competition in the European market, and reciprocal tariffs imposed by the United States.

RMG sector faces slowdown

The ready-made garment (RMG) industry, which contributes over 80 per cent of total export earnings, earned $12.9 billion during the July–October period, up just 1.4 per cent from $12.81 billion a year earlier.

In October alone, RMG exports fell 8.39 per cent year-on-year to $3 billion, compared to $3.3 billion in October 2024. Both woven and knitwear sub-sectors posted declines of over 10 per cent and 5 per cent, respectively, during the month.

However, over the four-month period, knitwear exports grew slightly by 0.42 per cent to $7.23 billion, while woven garment exports rose 2.66 per cent to $5.75 billion, indicating steady but slow performance amid soft global demand.

Mixed trends in other sectors

Outside garments, several sectors showed resilience.

Home textiles rose 9.47 per cent to $279 million, up from $255 million in the same period last year.

Leather and leather goods increased 11.08 per cent to $414 million, from $372 million a year earlier.

Engineering products surged 34.86 per cent, reaching $220 million, compared to $163 million previously.

Jute and jute goods exports rose 4.74 per cent to $277 million, from $265 million a year ago.

By contrast, agricultural products saw a modest 1.72 per cent decline to $379 million, down from $385 million in the previous fiscal year.

Outlook and challenges

Exporters attributed the weaker performance to a combination of sluggish global consumption, inventory adjustments among Western retailers, and heightened competition from emerging economies like Vietnam and Cambodia.

They added that the August–October period traditionally remains slow for export orders, but this year’s slump was deeper due to currency volatility and shifting trade policies in major markets.

Despite the dip, the EPB said the overall four-month performance demonstrates Bangladesh’s export resilience, as most key sectors continue to show year-on-year growth despite global headwinds.

“While monthly earnings declined, sustained growth in core sectors reflects the underlying competitiveness of Bangladesh’s export industry,” the EPB noted.

Analysts, however, caution that without a rebound in global apparel demand and resolution of trade barriers, export growth in FY2025–26 may remain subdued, posing challenges for the country’s balance of payments and industrial employment.