Bangladesh’s apparel exports to the European Union, the country’s largest export destination, dropped sharply in the first quarter of 2026. According to Eurostat data, export earnings from January to March fell by 19.26 percent year-on-year to 4.59 billion euros, down from 5.68 billion euros in the same period of 2025. In March alone, exports declined by 19.24 percent to 1.7 billion euros, a loss of about 410 million euros compared to the previous year.

The decline was driven by both reduced export volume and lower average prices. During the three months, Bangladesh’s export volume fell by 8.32 percent, while the average price per kilogram dropped by 11.93 percent. The EU’s total apparel imports from all countries also decreased by 11.62 percent in value and 8.32 percent in quantity during the same period.

Industry stakeholders warned that since nearly half of Bangladesh’s total export earnings come from the EU, a prolonged downturn in this market could negatively affect the broader economy. They also noted that global trade shifts and stronger competition from China, India, Vietnam, and other exporters have intensified challenges in the European market.