Bangladesh’s Export Earnings Decline in October for Third Consecutive Month

Nov 04, 2025
Business

Photo: Export Ship (Collected)

Staff Reporter | PNN:

Bangladesh’s export earnings continued to decline in October, marking the third consecutive month of reduction. Compared to the same period last year, the decrease was 7.43%. Exporters expressed concern that ongoing political uncertainty, increased U.S. tariffs, and banking sector issues will hinder improvement in the coming months.

According to data from the Export Promotion Bureau (EPB), Bangladesh exported goods worth $3.63 billion in October 2025-26, down from $4.13 billion in the same month last year. However, exports increased slightly compared to September.

Exporters noted that due to election-related instability, foreign buyers are placing fewer orders. Additional U.S. tariffs and increased Chinese supply in major European markets have reduced Bangladesh’s orders. Banking sector problems have also made opening back-to-back Letters of Credit (LCs) difficult, contributing to export decline.

M.A. Rahim Firoz, Vice Chairman of DBL Group, said, “Our orders have decreased significantly, and major buyers have reduced orders, impacting the operations of knitting and dyeing units. We do not expect order flow to improve before the upcoming election.”

Approximately 85% of Bangladesh’s exports come from the ready-made garments (RMG) sector. About half of these products go to European countries, with the United States being the single largest export market, accounting for roughly 20% of total exports. According to EPB, ready-made garment exports fell by 8.39% in October.

Md. Shihab Uddoja Chowdhury, Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), cited three main reasons for the decline: reduced orders due to election-related uncertainty, U.S. tariffs giving Chinese exporters more access to European markets, and the inability to open back-to-back LCs due to troubled banks.

Other exporters reported that after government announcements, many depositors withdrew funds from troubled banks, preventing garment owners from opening back-to-back LCs, and switching banks is not easy.

According to EPB statistics, from July to October, exports increased only in July. The subsequent three months saw consecutive declines. However, total exports over the four months rose by 2.22% year-on-year, totaling $16.14 billion compared to $15.79 billion in the same period last fiscal year.

In October, exports of frozen and live fish fell by 13%, plastic products by 12%, and agricultural products by 10%. Meanwhile, exports of leather and leather goods rose by 13%, jute and jute products by 7%, and home textiles by 14%.