Bangladesh’s garment exports dropped by 11.92 percent in the April–June quarter of the 2024–25 fiscal year, totaling $9.11 billion, according to the latest Bangladesh Bank data. Despite the quarterly decline, earnings were still 3.15 percent higher compared to the same period last year. The central bank attributed the slowdown to several challenges. Chief among them was the United States’ announcement of a 35 percent countervailing duty on Bangladeshi apparel.
Although the tariff is yet to take effect, the news created uncertainty in the market, prompting some buyers to delay placing orders.
Additionally, India’s restrictions on garment imports from Bangladesh via land routes disrupted logistics and curtailed access to a vital regional market.
The situation was further aggravated by a two-month work stoppage, beginning May 14, by National Board of Revenue (NBR) officials, which slowed customs clearance, delayed shipments, and hindered on-time deliveries.
Global economic headwinds, rising domestic production costs, and limited diversification of export markets also contributed to the volatility, the report noted.
The United States, Germany, the United Kingdom, Spain, France, the Netherlands, Italy, Canada, and Belgium remained the top destinations for Bangladeshi garments during the quarter, accounting for $6.55 billion, or 71.89 percent, of total export earnings.
In net terms—after deducting raw material import costs—the sector earned $5.18 billion, representing 56.78 percent of gross garment exports for the quarter.
Despite the dip in the final quarter, the apparel sector maintained its role as the backbone of the economy. Total garment exports for FY25 reached $39.35 billion, marking an 8.9 percent year-on-year increase, driven by strong performance in both knitwear and woven categories, the central bank said.
