Warning signal from export sector

Although exports grew in April 2026, the trend reversed in May, with exports declining by 7 per cent compared to the same month in 2025. Moreover, exports during the July-May period fell by 2.55 per cent.
This is not a positive sign for the economy, as Bangladesh may face inflationary pressure after July due to the proposed revision of the government employees' pay scale. Therefore, if overall export earnings continue to decline, the Bangladeshi taka may come under depreciation pressure, which could create a significant economic challenge in the coming months.
The RMG sector is also facing challenges, as the overall export trend largely depends on the performance of RMG exports, which account for around 80 per cent of the country's total exports. The rebound in April may have been driven by an improvement in RMG exports, while the decline in May may have resulted from a fall in RMG exports.
Overall, RMG exports also declined by around 3.41 per cent compared to the previous year. There is an increasing need to recalibrate the country's export strategy by reducing its dependence on the RMG sector. Instead, ceramics, and emerging sectors such as jute, pharmaceuticals, agro-products, leather, and IT should account for a larger share of exports.
In the near future, it will be essential to focus on export earnings to address inflationary challenges. At the same time, although dependence on RMG should be reduced, the export trajectory of the sector should continue to move upward.

Kawsik Azad Pronoy
Unit Head, Dutch Bangla Bank
Corporate Business Division