The country’s merchandise export earnings during the first seven months of the current financial year 2025-26 continued to record negative growth, primarily due to a decline in garment shipments to major EU markets, including Germany, France, and other destinations.

Bangladesh’s single-month merchandise export earnings in January 2026, for the sixth consecutive month on a year-on-year basis, also registered negative growth compared to the same month in 2025, according to data released on Monday by the Export Promotion Bureau (EPB).

During the July–January period of FY26, Bangladesh earned $28.41 billion, reflecting a 1.93 per cent year-on-year decline from $28.96 billion in the corresponding period of the previous fiscal year.

In January 2026, the country’s export earnings stood at $4.41 billion, slightly down by 0.50 per cent from $4.43 billion in January 2025, according to EPB data.

Exports began to witness year-on-year negative growth in August 2025, when the country recorded a 2.93 per cent fall.

This was followed by declines of 4.61 per cent, 7.43 per cent, 5.58 per cent, and 14.25 per cent in September, October, November, and December, respectively.

Of the total January earnings, RMG fetched $3.61 billion, recording a 1.35 per cent decline compared to the same month in 2025, the EPB data revealed.

As usual, RMG maintained its leading position, contributing $22.98 billion, a 2.43 per cent decline, to total export earnings during the first seven months of the current fiscal year.

Within this segment, knitwear exports fell by 3.13 per cent to $12.28 billion, while woven garments declined by 1.60 per cent to $10.69 billion.

Exporters, however, attributed the negative growth to weakening global demand, the imposition of reciprocal tariffs by the United States, and China’s increased focus on markets where Bangladesh is competitive.

They said that intensified global competition, rising production costs, and ongoing geopolitical and trade uncertainties have created significant external pressures, contributing to the current challenges in Bangladesh’s export performance.

Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said December to February is usually the season for summer orders, compared to winter, and there had previously been growth during this period.

However, exports remained in negative territory, which, he noted, is concerning.

MA Rahim, vice-chairman of DBL Group, said buyers typically hold some work orders two to three months before a national election and monitor the situation for at least a month after the polls.

He expects that buyers will resume orders previously held back or shifted elsewhere once a stable political situation is established post-election.

Exporters said that US tariffs have altered the overall market landscape, causing a decline in sales and a reduction in work orders.

They said that China and India have been capturing orders by offering aggressively low rates to offset US tariff impacts.

The Indian government has also introduced new incentive packages to support its exporters targeting US high tariffs, whereas the Bangladesh government has been withdrawing benefits, including cutting incentives in the name of LDC graduation, they alleged.

Nevertheless, exporters expect improvement following the national election, suggesting the situation could change under an elected government if the required policy support is provided in consultation with businesses.

Meanwhile, during the July-January period of FY26, home textile exports rose 3.26 per cent year-on-year to $509.97 million. Leather and leather products earned $707.24 million, up 5.71 per cent.

The agricultural sector saw a 9.88 per cent decline to $607.28 million. Jute and jute goods exports reached $493.85 million, marking 1.97 per cent growth during FY26.

Frozen and live fish recorded 4.94 per cent growth, fetching $297.56 million during the first seven months of the fiscal year. Pharmaceutical exports grew by 5.03 per cent to $139.10 million.

During the July-January period of FY26, Bangladesh’s overall exports to major billion-dollar destinations were down: Germany by 10.35 per cent, France by 11 per cent, Italy by 5.46 per cent, Denmark by 10.40 per cent, India by 4.98 per cent, and Japan by 2.78 per cent.

In FY25, Bangladesh earned $48.28 billion, of which $39.34 billion came from RMG.