Garment Exports Slip 12% in Q4 Despite Yearly Growth

Bangladesh’s garment exports fell 11.92 percent in the April–June quarter of the 2024–25 fiscal year compared to the previous quarter, dropping to $9.11 billion, according to the latest quarterly data from the central bank.

Despite the quarterly slowdown, earnings were still 3.15 percent higher than in the same period a year earlier.

The readymade garment sector faced multiple challenges during the quarter. One of the most significant was the United States’ announcement of a 35 percent countervailing duty on Bangladeshi apparel. Although the measure has yet to take effect, the news created uncertainty and prompted some buyers to delay or scale back orders.

Additional pressure came from Indian restrictions on garment imports from Bangladesh via land routes, disrupting logistics and limiting access to a key regional market. A two-month agitation beginning May 14 by officials of the National Board of Revenue further slowed customs clearance, delayed shipments, and hampered timely deliveries.

Global economic headwinds, rising domestic production costs, and a lack of diversification in export markets added to the volatility.

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, together accounting for $6.55 billion, or 71.89 percent, of total export earnings.

In net terms—after subtracting raw material import costs from gross export receipts—the sector generated $5.18 billion, or 56.78 percent of total garment export earnings in April–June.

For the full fiscal year, garment exports reached $39.35 billion, up 8.9 percent from the previous year, supported by growth in both knitwear and woven segments. Despite the Q4 dip, the industry continues to anchor Bangladesh’s economy and employment base.