TCF POST Report
Despite a robust surge in shipments during June 2026, the RMG sector recorded a year-on-year decline of 1.64% in export earnings for the 2025-2026 fiscal year. Total earnings for the sector settled at USD 38.7 billion. Notwithstanding this decline, the RMG sector remains the dominant force in national trade, accounting for 80.63% of Bangladesh’s total merchandise export earnings of USD 48 billion for FY 2025–26.
Performance Comparison (in Million US$)
| Category | FY 2023-2024 | FY 2024-2025 | FY 2025-2026 |
| Total RMG | 36,150.00 | 39,346.97 | 38,701.15 |
| Knitwear | 19,280.00 | 21,159.08 | 20,623.83 |
| Woven Garments | 16,860.00 | 18,187.89 | 18,077.32 |
Growth Trends Analysis
The sector experienced a reversal of the growth trajectory observed in the previous fiscal year. While the sector saw expansion in FY 2024-2025, the 2025-2026 period faced broader challenges, leading to lower export values across key sub-sectors.
| Category | FY 2024-25 over FY 2023-24 | FY 2025-26 over FY 2024-25 |
| Total RMG | +8.84% | -1.64% |
| Knitwear | +9.75% | -2.53% |
| Woven Garments | +7.88% | -0.61% |
- Sub-sector Dynamics: During the FY 2024-25 growth phase, Knitwear led with a nearly double-digit increase, while woven garments grew by about eight percent.
- Reversal: In FY 2025-26, this trend reversed. Knitwear saw the most significant correction with a 2.53% decline, while Woven Garments experienced a more marginal decline compared to the previous year.
June 2026 Recovery
Garments export registered a significant 21.52% year-on-year growth in June 2026, earning USD 3,387.71 million compared to USD 2,787.78 million in June 2025. During this month:
- Knitwear exports increased by 19.49%.
- Woven garments grew by 24.02%.
Industry analysts note that while this June performance highlights the sector’s capacity for late-year surges, the overall fiscal results underscore a complex environment marked by shifting global demand and evolving market dynamics.
