Bangladesh RMG Exports Reach $10.58 Billion in First Quarter of FY2026-27, Showing Steady Growth

Bangladesh's ready-made garment (RMG) industry recorded a solid performance in the opening quarter of the 2026-27 fiscal year, with total exports rising 6.1 percent year-on-year to $10.58 billion during July–September. This compares with $9.97 billion in the same period of the previous fiscal year, according to figures released by the Export Promotion Bureau (EPB).

The growth provides an encouraging signal for the country's largest export sector, which continues to account for the vast majority of merchandise export earnings and supports millions of jobs, particularly for women workers. While the increase is moderate rather than dramatic, it demonstrates the industry's ability to maintain positive momentum amid a range of domestic and international pressures.

Traditional markets remained the backbone of shipments. The European Union continued as the single largest destination, absorbing approximately $4.9 billion worth of garments—equivalent to about 46 percent of total RMG exports—and posting a 3.3 percent rise compared with the same quarter a year earlier. The United States, the second-biggest market, performed more strongly, with exports climbing 10.4 percent to $2.22 billion and representing nearly 21 percent of the overall total. Shipments to the United Kingdom increased by roughly 6 percent to $1.29 billion, while Canada recorded a more modest 3.9 percent gain, reaching about $350 million.

Non-traditional markets also contributed meaningfully, with exports rising 9.4 percent to $1.81 billion and accounting for just over 17 percent of total RMG shipments. This diversification trend is viewed positively by industry stakeholders, as it reduces over-reliance on a handful of major buyers and helps spread risk.

By product category, knitwear exports grew 6.9 percent, slightly outpacing the 5.1 percent increase recorded for woven garments. The relatively stronger performance of knitwear aligns with ongoing demand patterns in key markets and the competitive positioning of Bangladesh's manufacturers in basic and mid-range apparel items.

The quarterly result comes against a backdrop of persistent challenges for the sector. Energy supply constraints have periodically affected factory operations, while rising production costs, compliance requirements, and global economic uncertainties continue to test exporters. Looking ahead, the scheduled graduation from Least Developed Country (LDC) status will gradually phase out certain preferential trade benefits in major markets, making sustained competitiveness, product upgrading, and market diversification even more critical.

Despite these headwinds, the first-quarter figures indicate that demand for Bangladeshi garments remains resilient. Analysts note that the positive growth, especially in the United States and non-traditional destinations, reflects the industry's scale, cost advantages, and improving compliance standards. However, they also caution that sustaining or accelerating this pace will depend on addressing domestic bottlenecks—particularly reliable energy supply, infrastructure, and access to finance—while navigating shifting buyer expectations on sustainability and lead times.

Overall, the $10.58 billion export total in the July–September period underscores the RMG sector's continued central role in Bangladesh's economy. It provides a measure of stability for foreign-exchange earnings and employment at a time when other macroeconomic indicators remain mixed. Industry representatives and policymakers are expected to use the early data to assess whether further support measures or strategic adjustments are needed to protect and build on this momentum through the rest of the fiscal year.
The performance highlights both the strengths and the ongoing vulnerabilities of Bangladesh's garment industry as it enters a new phase of global competition.