The strong month-on-month recovery reflects seasonal winter shipments, while weaker garment exports and falling order indicators keep the near-term outlook cautious.
Bangladesh’s merchandise exports reached $4.72 billion in July 2026, the highest monthly value recorded over the past year. However, earnings remained 0.9% below the $4.77 billion generated in July 2025, according to Export Promotion Bureau data. Compared with June’s $4.20 billion, exports increased approximately 12.4%.
The sequential improvement should be interpreted carefully. July is normally a strong shipping month as exporters dispatch sweaters, woven garments and other autumn-winter products. The month-on-month increase therefore reflects seasonality as well as underlying business conditions.
Garments account for the shortfall
Ready-made garment exports declined 1.92% year on year to approximately $3.89 billion, representing more than 82% of total merchandise earnings. Knitwear proved comparatively resilient, falling 0.9% to $2.15 billion, while woven garment exports declined 3.16% to $1.72 billion.
The comparison was demanding because July 2025 produced Bangladesh’s highest-ever monthly apparel export value. Nevertheless, BGMEA’s utilisation-declaration data—an indicator of imported inputs intended for export production—fell 2.8% year on year, suggesting that near-term order and production activity remains subdued.
Other sectors provide support
Several smaller export categories expanded and limited the overall decline. Jute and jute goods rose almost 54% to $85.36 million, home textiles increased 14.37% to $77.86 million, and engineering-product exports grew 18.62% to $69.07 million. Leather and leather goods advanced 2.81% to $130.96 million.
Agricultural exports, however, fell 9.02%, while frozen and live fish shipments declined 13.28%.
Recovery remains uncertain
Exporters expect limited apparel growth before the end of 2026 because of weak international demand, gas shortages restricting factory utilisation and buyer concerns about delivery reliability.
The next signal will come from autumn order books and utilisation declarations. Sustained recovery will require more than seasonal shipment peaks: Bangladesh must restore reliable industrial energy supplies, strengthen woven-apparel competitiveness and convert buyer enquiries into orders without further margin erosion.
