Bangladesh’s garment exports fell 11.92% from the previous quarter to $9.11bn in April–June of the 2024–25 fiscal year, central bank data show. The figure, however, was 3.15% higher than the same period a year earlier.

The Bangladesh Bank attributed the quarterly decline to several factors, including the United States’ announcement of a 35% countervailing duty on Bangladeshi apparel. Although the measure is yet to take effect, it has created uncertainty, prompting some buyers to delay orders.

Logistics were further disrupted by India’s restrictions on garment imports via land routes and by a two-month agitation by National Board of Revenue officials, beginning 14 May, which slowed customs clearance and delayed shipments.

Global economic headwinds, higher domestic production costs, and limited diversification of export markets also weighed on performance, the report said.

The US, Germany, UK, Spain, France, the Netherlands, Italy, Canada, and Belgium remained Bangladesh’s top garment buyers in the quarter, accounting for $6.55bn, or nearly 72% of total earnings.

Net exports—after deducting the cost of imported raw materials—stood at $5.18bn, or 56.78% of gross garment exports, in the quarter.

Despite the slowdown, the sector maintained its central role in the economy, with total garment exports in FY25 reaching $39.35bn, an 8.9% increase from the previous fiscal year, driven by growth in both knitwear and woven shipments.