Bangladesh’s export earnings have fallen for eight consecutive months through March 2026, marking the longest and steepest decline in the country’s history. Export Promotion Bureau (EPB) data show March exports dropped over 18 percent year-on-year to USD 3.48 billion, down from USD 4.25 billion a year earlier. Overall, exports in the first nine months of fiscal year 2025–26 fell 4.85 percent to USD 35.39 billion. The apparel sector, which contributes more than 80 percent of total exports, saw an 8‑month slump, with March earnings down 19.35 percent.

Analysts attribute the downturn to the Middle East conflict, rising fuel import costs, and global market disruptions. Bangladesh has also lost its position as the world’s second-largest apparel exporter to Vietnam. Exporters cite high raw material import dependence, energy shortages, and delayed shipments due to closed airspace and disrupted sea routes. Industry leaders warn that foreign buyers are shifting orders to India and Vietnam amid concerns over Bangladesh’s power stability.

Economists caution that unless Middle East tensions ease and transport routes normalize, Bangladesh’s export recovery will remain uncertain, threatening foreign currency reserves and overall economic stability.