Bangladesh’s apparel exports to the European Union, the country’s largest export destination, declined sharply in early 2026. According to Eurostat data, export earnings from the EU fell by 19.26 percent in January and February compared with the same period in 2025, dropping from 3.57 billion euros to 2.88 billion euros. In February alone, exports decreased by 12.39 percent to 1.45 billion euros. The fall was driven by both lower export volumes and reduced average prices.

The EU’s overall apparel imports also declined by 11.27 percent during the same period, reflecting weaker consumer demand across Europe. Industry representatives attributed the downturn to global trade shifts, increased competition from China, India, and Vietnam, and reduced purchasing power in Europe due to high living costs and interest rates. Buyers have become more cautious and are negotiating lower prices, putting pressure on suppliers.

Experts warned that if the EU market slump continues, it could negatively affect Bangladesh’s broader economy, as nearly half of the country’s export earnings come from this region. They recommended diversifying products, improving value addition, and strengthening trade diplomacy to sustain export growth.