Export earnings from Bangladesh’s major markets, including the United States, Germany and the United Kingdom, increased during July–October of the financial year 2024–25, fueled by higher orders for readymade garments as global buyers redirected their focus from China.

While exporters are optimistic about receiving more orders in the upcoming months, they also expressed concerns over the sustainability of this growth, citing political tensions and a severe energy shortage as key challenges.

According to Export Promotion Bureau data, export earnings from the US, the single largest export destination for Bangladesh, grew by 16.32 per cent to $2.81 billion in the first four months of FY25 compared with those of $2.41 billion in the same period of FY24.

The country’s readymade garment exports to the US in July-October period of FY25 increased by 16.57 per cent, reaching $2.46 billion compared with those of $2.11 billion in the same period of FY24.

Export earnings from Germany in the first four months of FY25 increased by 9.08 per cent to $1.65 billion compared with those of $1.52 billion in the same period of FY24.

In the period, readymade garment exports to Germany, the second largest export destination for Bangladesh, increased by 9.52 per cent to $1.54 billion compared with those of $1.41 billion in the same period of the previous financial year.

Export earnings in July-October of FY25 from the UK, the third largest export destination for Bangladesh, grew by 7.02 per cent to $1.58 billion compared with those of $1.48 billion in the same period of FY24.

Apparel exports to the UK in the period increased by 8.10 per cent to $1.49 billion compared with those of $1.38 billion.

‘With a strong flow of orders, we are highly optimistic about the future of the RMG business. However, deteriorating law and order situation and labour unrests remain major concerns for sustaining this growth,’ former Bangladesh Garment Manufacturers and Exporters Association vice-president Abdullah Hil Rakib said.

He said that Bangladeshi manufacturers were receiving increased orders as the global buyers were shifting their procurement from China.

‘I am very hopeful about the business prospects for 2025. If political stability is restored, the RMG sector could achieve 25 per cent growth in the year,’ Rakib said.

The EPB data showed that export earnings from Spain in July-October of FY25, however, declined by 4.48 per cent to $1.18 billion compared with those of $1.24 billion in the same period of the past financial year.

Readymade garment exports to Spain in the period also decreased by 5.05 per cent to $1.15 billion compared with those of $1.21 billion.

Rakib said that Inditex, the largest buyer in Spain, had embraced the fast fashion model by relocating production closer to key markets, allowing for quicker responses to rapidly changing trends.

As part of this strategy, the company has reduced lead times and cut orders to Bangladesh due to its longer production timelines, he said.

Bangladesh’s exports to France in July-October of FY25 increased by 10.92 per cent to $789.63 million compared with those of $711.87 million in the same period of FY24.

The country’s export earnings from Japan in the first four months of FY24 grew by 3.39 per cent to $488.85 million compared with those of $472.78 million in the same period of FY24.

RMG exports to Japan in the period increased by 4.09 per cent to $409.44 million compared with those of $393.38 million in the same period of the previous financial year.

Bangladesh’s export earnings from India in July-October of FY25 increased by 10.75 per cent to $650.54 million compared with those of $587.39 million in the same period of FY24.

Apparel exports to India in the period increased by 13.28 per cent, totalling $279.87 million, the EPB data showed.

Bangladesh Knitwear Manufacturers and Exporters Association president Mohammad Hatem said that while the flow of orders had increased, product prices had declined.

He said that Bangladesh’s RMG exports were returning to a positive trajectory, but labour unrests and shortages of gas and electricity could pose challenges to the sector’s prospects.