Dhaka, Bangladesh (BBN) - Bangladesh’s external sector showed contrasting trends in September with merchandise exports falling for the second consecutive month while remittance inflows hit record highs, providing a crucial cushion for the economy.
Aggregate export earnings dropped 4.61 per cent year-on-year to $3.63 billion, driven mainly by a decline in readymade garment (RMG) shipments—the country’s largest foreign-currency earner, according to the state-run Export Promotion Bureau (EPB).
Knitwear exports fell 5.75 per cent to $1.63 billion, and woven garments declined 5.54 per cent to $1.20 billion.
Exporters attributed the slowdown to reduced orders from the US following a 20 per cent reciprocal tariff imposed in early August, which has also dampened consumer spending abroad.
They also said US apparel orders to Bangladesh have decreased rather than increased while other than the US market, Bangladesh’s export orders have not been significantly affected.
The exporters cautioned that many exporters operate on thin margins and cannot absorb further tariff-related losses.
Despite the monthly fall, exports in the first quarter of FY26 rose 5.56 per cent to $11.66 billion.
On the other hand, non-RMG sectors—including leather, home textiles, frozen and live fish, agricultural products and pharmaceuticals—registered growth, partially offsetting the RMG contraction.
Economists highlighted the economy’s heavy reliance on a few external sources and stressed the need for product and market diversification.
In contrast, remittance inflows rose sharply, reaching $2.69 billion in September, up 11.7 per cent from the same month last year and marking the fifth-highest monthly inflow on record.
The July–September quarter saw $7.58 billion in remittances, an 8.00 per cent increase from the previous year.
Analysts attributed the rise to stricter regulation of illegal hundi channels, government cash incentives, improved banking services and growing confidence among migrant workers.
The surge in remittances has strengthened Bangladesh’s foreign currency reserves, which rose to $31.43 billion under BB calculations and $26.55 billion under IMF BPM6 standards by the end of September.
Bangladesh Bank’s proactive interventions in the forex market, including purchases of dollars from commercial banks and regulation of letters of credit for imports, have helped stabilise the exchange rate and ensure liquidity.
Economists note that while higher remittance inflows provide relief amid export challenges, sustaining both channels is crucial for macroeconomic stability.
BBN/AN/SSR