Bangladesh’s ready-made garment industry has entered a severe downturn since July of the current fiscal year, with exports falling steadily due to global instability and the Middle East war. According to BGMEA data, March 2026 exports dropped to USD 2.78 billion, down over 19 percent from a year earlier. The industry now faces a fourfold crisis—declining orders, surging shipping and transport costs, and worsening power shortages. BGMEA warns that if the situation persists, many factories may be forced to close.

Former BGMEA vice president Nasir Uddin Chowdhury said the Middle East conflict has intensified existing global economic disruptions, making buyers cautious and pushing Bangladesh behind China and Vietnam. Shipping costs have soared, with container rates to Europe rising from USD 1,600 to as high as USD 2,400, while Middle East-bound freight now costs up to USD 5,000 per container. Domestic transport and fuel costs have also nearly doubled, and frequent load-shedding has crippled production.

BGMEA leaders have urged the government for greater policy and financial support, including soft loans, to help sustain the sector amid prolonged global and regional instability.