The Bangladeshi export industry endured a turbulent year in 2025, with merchandise exports falling by nearly 5% to $47.74 billion, according to the latest official data. This downturn was primarily driven by weakening global demand for apparel and consumer goods, exacerbated by a volatile geopolitical landscape. Ongoing conflicts in Ukraine and the Middle East continued to disrupt international trade routes and unsettle supply chains, creating a challenging backdrop for the nation's economic engine.

The garment sector, which accounts for over 84% of Bangladesh’s total export earnings, was particularly hard hit by reciprocal tariffs imposed by the United States. In an effort to bypass these higher duties, local exporters rushed shipments between April and August; however, this "front-loading" strategy resulted in a significant lull during the critical Christmas delivery season. Md Shehab Udduza Chowdhury, Vice-President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), highlighted the strain on the industry, noting that "demand from the United States weakened as prices rose following the tariffs." He further explained that exports to the European Union were undermined by aggressive pricing from competitors like China, India, and Vietnam, who redirected their goods to Europe after facing barriers in the U.S. market.

The slump reached a low point in December, when garment exports plunged by over 14% to $3.14 billion. Beyond external tariffs, the Export Promotion Bureau (EPB) cited rising production costs, domestic political volatility, and limited access to bank financing as significant internal hurdles. Despite these setbacks, the report offered a glimmer of hope through export diversification. While the ready-made garment (RMG) sector struggled, non-RMG categories such as specialized textiles, leather, chemical products, and bicycles recorded growth. Md Abul Hossain, Chairman of the Bangladesh Jute Mills Association, confirmed this positive trend, stating that exports of jute and value-added jute products had risen consistently over the past six months.

As 2026 begins, manufacturers remain cautiously optimistic that shipments will stabilize once retailers in Western markets clear their excess inventories. Although December marked the fifth consecutive month of year-on-year decline, a marginal 1.97% increase compared to November suggests a tentative month-on-month recovery. The government and industry leaders are now looking toward emerging markets in the UAE, Australia, and Canada—which saw export growth in late 2025—to mitigate the impact of the slowdown in traditional Western strongholds.