Bangladesh’s Garment Exports Decline Nearly 12% in Q4, Despite Yearly Growth. According to the latest Bangladesh Bank data, garment exports fell by 11.92% in the April-June quarter of the 2024-25 fiscal year, totaling $9.11 billion compared to the previous quarter. However, exports still showed a 3.15% increase compared to the same period last year.

The readymade garment sector faced significant challenges this quarter, notably the U.S. announcement of a 35% countervailing duty on Bangladeshi apparel. Although the duty is not yet enforced, it has caused uncertainty among buyers, prompting some to delay orders.

Additionally, Indian restrictions on garment imports from Bangladesh through land routes disrupted logistics, limiting access to a crucial regional market, as noted by the regulator.

Furthermore, a two-month protest starting on May 14 by officials from the National Board of Revenue hindered customs clearance, delayed shipments, and affected timely deliveries.

The report indicated that broader global economic challenges, along with rising domestic production costs and a lack of diversification in export markets, contributed to the instability in export trends.

During this quarter, the United States, Germany, the United Kingdom, Spain, France, the Netherlands, Italy, Canada, and Belgium remained the primary destinations for Bangladeshi garments, accounting for $6.55 billion, or 71.89 percent, of total earnings.

In net terms—after deducting raw material import costs from export earnings—the sector generated $5.18 billion, which is 56.78 percent of gross garment exports, in the April to June quarter.

Despite the decline in quarterly figures, the industry continued to be a vital component of Bangladesh’s economy.

Total garment exports for FY25 reached $39.35 billion, reflecting an 8.9 percent increase from the previous fiscal year, driven by growth in both knitwear and woven shipments, according to the central bank.