Bangladesh’s merchandise exports surged by nearly 25 per cent in July 2025, marking a strong start to the fiscal year as shipments totalled US$4.77 billion, according to Export Promotion Bureau (EPB) data released Monday.

The growth, however, remains overwhelmingly reliant on the readymade garment (RMG) sector, underlining the country’s persistent struggle with export diversification.

Of the total earnings, the RMG sector contributed US$3.96 billion—roughly 83 per cent of overall exports—posting a 24.67 per cent year-on-year increase. Within the segment, knitwear exports reached US$2.17 billion (up 26.01 per cent), while woven garments fetched US$1.78 billion (up 23.08 per cent).

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Mahmud Hasan Khan attributed the jump to disruptions in July 2024 caused by political unrest and to a rush in shipments ahead of new US tariffs. “Exporters expedited deliveries to meet the July 31 deadline to avoid the flat 35 per cent tariff that was later revised to 20 per cent,” he said.

This urgency, Khan noted, may lead to slower growth in August as the immediate pressure from the tariff adjustments subsides.

Beyond garments, several other sectors showed positive performance. Leather and leather goods exports rose by 29.65 per cent to US$127.38 million, while frozen and live fish exports increased by 42.71 per cent to US$41.20 million, driven by a 47.38 per cent rise in shrimp shipments.

Agricultural products fetched US$90.50 million (up 12.86 per cent), and home textiles earned US$68.08 million, showing 13.24 per cent growth.

Engineering goods recorded a 74.45 per cent increase to US$58.23 million, and plastics exports grew by 7.41 per cent to US$21.16 million. Jute and jute goods posted modest growth of 4.92 per cent, earning US$55.44 million.

Despite the upbeat start to FY26, the export profile remains heavily skewed toward garments. Bangladesh’s total export earnings reached US$48.28 billion in FY25, marking an 8.58 per cent year-on-year growth. However, economists and trade experts have long called for broader structural changes to reduce overreliance on a single sector, particularly in light of growing international trade uncertainties.

With US tariffs reshaping export dynamics and demand trends remaining volatile in key markets, the sustainability of the current growth rate remains uncertain.