Bangladesh’s apparel exports to European Union countries, the sector’s largest destination, dropped sharply at the start of 2026. According to Eurostat data, exports in January 2026 fell by 25.25 percent year-on-year to 1.43 billion euros, down from 1.91 billion euros in January 2025. The decline was driven by a 17.49 percent fall in export volume and a 9.41 percent drop in average price per kilogram. Industry stakeholders expressed concern that a prolonged downturn in the EU market could negatively affect Bangladesh’s overall economy, as nearly half of its export earnings come from this region.

Analysts attributed the slump to weaker consumer demand in Europe, rising living costs, higher interest rates, and slower retail sales. Increased competition from China, India, Vietnam, and other exporters has also intensified price pressure. Other major suppliers, including Turkey and China, also saw export declines. Former BGMEA director Mohiuddin Rubel noted that EU apparel imports overall fell by about 15.48 percent in January, reflecting a broader market slowdown.

Industry representatives urged swift policy action, emphasizing product diversification, higher value addition, stronger trade diplomacy, and exploring new markets to sustain export growth.