Bangladesh’s merchandise export earnings declined marginally in July, the first month of the financial year 2026-27, as weaker shipments from the country’s dominant readymade garment sector outweighed robust growth in several non-traditional export sectors.

Data released by the Export Promotion Bureau on August 3 showed that the country’s exports fell by 0.9 per cent year on year to $4.73 billion in July from $4.77 billion in the corresponding month of the previous year.

The decline was mainly driven by the readymade garment sector, which accounts for more than four-fifths of the country’s export earnings.

RMG exports fell by 1.92 per cent to $3.89 billion from $3.96 billion a year earlier, reducing the sector’s contribution to total exports to about 82.2 per cent.

Knitwear exports slipped by 0.9 per cent to $2.16 billion, while woven garment exports recorded a steeper 3.16 per cent decline to $1.73 billion.

Despite the weakness in apparel exports, a number of non-apparel sectors posted strong growth, cushioning the overall decline in export earnings.

Jute and jute goods emerged as the best-performing sector, with exports surging by 53.97 per cent to $85.36 million from $55.44 million a year earlier.

Home textile exports rose by 14.37 per cent to $77.86 million, while engineering products increased by 18.62 per cent to $69.07 million.

Bicycle exports, a major engineering product, climbed by 20.54 per cent to $14.61 million.

Chemical products also recorded strong growth, with exports rising by 25.68 per cent to $41.36 million.

Pharmaceutical exports, a key component of the sector, increased by 19 per cent to $22.67 million.

Leather and leather products registered modest growth of 2.81 per cent, with export earnings reaching $130.96 million compared with $127.38 million in July last year.

Within the sector, leather products rose by 5.48 per cent to $40.43 million, although leather footwear exports declined by 2.76 per cent to $77.62 million.

Plastic product exports also edged up by 1.98 per cent to $21.58 million.

Several traditional export sectors, however, remained under pressure.

Agricultural product exports declined by 9.02 per cent to $82.34 million, while exports of frozen and live fish dropped by 13.28 per cent to $35.73 million.

Shrimp exports recorded the sharpest fall among the major product groups, plunging by 22.83 per cent to $24.10 million from $31.23 million a year earlier.

The United States retained its position as Bangladesh’s largest export destination in July, with shipments rising marginally by 0.25 per cent to $918.74 million.

Germany remained the second-largest market with imports worth $495.30 million, followed by the United Kingdom at $478.42 million.

Among the major export destinations, India recorded the fastest growth at 15.3 per cent, followed by Saudi Arabia with a 10.64 per cent increase.

The July trade data suggest that Bangladesh began the new financial year with subdued export momentum as the contraction in garment shipments offset gains in non-traditional sectors.

However, strong performances by jute and jute goods, home textiles, engineering products and pharmaceuticals helped limit the overall decline in export earnings.