Bangladesh’s Exports Rise 5.43% in First Two Months of FY27
Bangladesh’s merchandise exports rose 5.43% year-on-year to $9.16 billion in the first two months of FY2026–27, being supported by strong August shipments from garments and several non-RMG sectors. Although the latest figures point to renewed export momentum, the RMG sector continues to dominate and the cumulative growth rate remains relatively modest.
In a Nutshell
- Bangladesh’s merchandise exports reached $9.16 billion during July-August of FY2026–27, up 5.43% from $8.69 billion in the same period a year earlier.
- August exports rose 13.14% year-on-year to $4.43 billion, compared with $3.92 billion in August 2025.
- The ready-made garment sector remained the main contributor, with RMG exports rising 5.12% to $7.50 billion during July-August.
- Knitwear exports increased 6.17% during the first two months, while woven garment exports grew 3.81%.
- Several non-RMG sectors recorded strong cumulative growth, including printed materials at 41.89%, pharmaceuticals at 38.94%, other footwear at 27.32%, and jute and jute goods at 22.26%.
- The United States remained Bangladesh’s largest export market, with exports there increasing 11.90% during July-August. The United Kingdom regained its position as the second-largest market, followed by Germany, Spain and the Netherlands.
- Among emerging markets, exports to Türkiye rose 141.03% in August, while shipments to South Korea and Saudi Arabia increased 42.37% and 42.09%, respectively.
Context
Bangladesh’s exports reached $9.16 billion in the first two months of FY2026–27, up from $8.69 billion last year. August led this surge, rising 13.14% to $4.43 billion. Garments still drive the most of these earnings bringing in $7.50 billion. Both knitwear and woven items grew, though August comparison figures appear higher partly due to weak sales in August 2025.
At the same time, the non-garment sectors show promising signs of diversification. Pharmaceuticals, jute goods, printed materials, and footwear recorded strong cumulative growth. Expanding these non-traditional sectors remains vital to reducing Bangladesh's heavy reliance on garment exports.
Why It Matters
The 5.43% increase in exports during the first two months of FY2026–27 is important because export earnings remain a major source of foreign currency for Bangladesh. The figures indicate that exporters have maintained positive growth despite difficult conditions in international markets.
More importantly, the performance outside garments suggests that Bangladesh’s export base may be showing some signs of broadening. Pharmaceuticals, printed materials, jute products, footwear and engineering products all recorded strong growth during the period. If it sustains, such expansion can reduce the economy’s dependence on a single dominant export sector.
Market diversification is another positive sign. While the United States remains the largest destination, Bangladesh also recorded significant growth in emerging markets such as Türkiye, South Korea and Saudi Arabia.
What We Think
Bangladesh’s early export growth for FY2026–27 is a positive sign that should motivate us to keep moving forward. However, instead of celebrating early, the real goal is to keep this growth going throughout the entire year. To build a stronger economy, the country needs to focus on selling a wider variety of goods beyond just garments. Most importantly, key challenges like energy shortages, high loan costs, global trade uncertainty, and the overall high cost of running a business must be solved to support exporters.