Bangladesh’s export earnings have experienced a continued decline for the third month in a row, with October 2025 showing a sharp drop of 7.43%. This marks a concerning trend, especially considering that both export revenue and remittances had previously been sources of some relief in an otherwise sluggish economy.
According to the latest data from the Export Promotion Bureau (EPB), the total export earnings for October 2025 were $3.82 billion, a significant decrease from $4.13 billion in the same month of the previous year. The 7.43% fall in export income follows similar declines in both August and September, with September’s export earnings decreasing by 4.61% and August by 2.93%.
In contrast, July 2025 had seen a strong 24.90% growth compared to July 2024, offering a brief reprieve and boosting the overall performance for the first four months of the fiscal year (July-October). However, despite this growth, the overall export growth for the first four months has now dwindled to just 2.22%, down from a near 25% increase at the start of the year.
Experts suggest that the political climate in the country could be influencing this downturn. While July 2024 was marked by widespread student protests and political unrest, which brought much of the economy to a standstill, export earnings during that period still reached $3.82 billion. In contrast, the past three months (August, September, and October) have seen a relatively stable political environment, yet export income has failed to increase, which is raising alarms among industry stakeholders.
Mahmud Hasan Khan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), remarked that the imposition of additional tariffs by former U.S. President Donald Trump in July and August had put pressure on the export sector. “The effects of this tariff increase were still felt in September, but the sharp drop in October is certainly alarming. Our policymakers need to be more vigilant,” Khan added.
An analysis of the sector-specific export data reveals that 80% of Bangladesh’s total exports come from the ready-made garment (RMG) sector. Although garment exports started strong in the new fiscal year, with a 24.5% growth in July (totalling $3.96 billion), this momentum has not been sustained. Exports fell by nearly 5% in August and by about 5.5% in September. In October, garment exports were valued at $3.02 billion, which is 8% lower than October 2024.
According to EPB data, the total garment export earnings for the first four months of FY 2025-26 stand at $12.99 billion, a modest 1.40% increase over the same period last year when the figure was $12.81 billion.
The leather and leather products sector, currently the second-largest export category, has shown positive growth. From July to October 2025, exports of leather and leather goods reached $410 million, an 11% increase compared to the same period last year.
The third-largest export sector, agricultural processed goods, has faced a slight decline. Exports of agricultural processed products totalled $380 million for the first four months of the fiscal year, a decrease of nearly 2%. In October, exports in this category amounted to $100 million, a drop of 9.5%.
However, the home textiles sector showed signs of recovery in October, with exports reaching $70 million, a 14% increase compared to the same month last year. The first four months of the year have seen home textile exports total $280 million, up by 9.5% year-on-year.
Additionally, exports of jute and jute products have remained positive, with total earnings of $277.4 million for the first four months of FY 2025-26. This is a 4.74% increase compared to the same period last year. In October alone, the export of jute products amounted to $80 million, showing a 7% growth.
As the year progresses, the export sector remains a key concern for Bangladesh’s economic health, and stakeholders are calling for a more strategic response to reverse the current downtrend.