Bangladesh Exports Jump 13% in August 2026 as RMG, Jute, Pharma, Leather Gain

TBS Report, Dhaka — Bangladesh's merchandise exports rose 13.14 percent year-on-year to $4.43 billion in August 2026, driven by strong growth in ready-made garments (RMG) and several non-RMG sectors, according to the Export Promotion Bureau (EPB) — a positive signal for the country's external sector recovery amid broader macroeconomic challenges.

Exports stood at $3.92 billion in August 2025. During the first two months of fiscal year 2026-27, merchandise exports increased 5.43 percent to $9.16 billion from $8.69 billion in the same period a year earlier. Simultaneously, remittance inflows reached $2.97 billion in August 2026, providing additional support to the external sector.

📊 August 2026 Export Performance

• 💰 August 2026 exports: $4.43 billion (+13.14% YoY)
• 💰 August 2025 exports: $3.92 billion (base)
• 💰 July-August FY27 exports: $9.16 billion (+5.43% YoY)
• 💰 August remittance inflow: $2.97 billion

👕 RMG Sector Performance

The RMG sector remained the main driver of export growth:

• 👕 RMG exports August: $3.89 billion (+13.92% YoY)
• 👕 Knitwear August: +14.88% YoY
• 👕 Woven garments August: +12.70% YoY
• 👕 RMG July-August: $7.50 billion (+5.12% YoY)
• 👕 Knitwear July-August: +6.17% YoY
• 👕 Woven July-August: +3.81% YoY

📊 Non-RMG Sector Growth (August 2026)

Non-RMG sectors recorded strong growth, demonstrating encouraging diversification signals:

• 🧵 Jute and jute goods: +37.09%
• 💊 Pharmaceuticals: +28.52%
• 👕 Leather and leather goods: +24.85%
• 📖 Printed materials: +24.83%
• 🔧 Engineering products: +23.88%
• 👕 Other footwear: +15.29%

During July-August, exports of printed materials increased 41.89%, pharmaceuticals 38.94%, other footwear 27.32%, and jute and jute goods 22.26% — showing sustained momentum across diversified product categories.

👥 BGMEA President's Assessment

Mahmud Hasan Khan Babu, President of the BGMEA, attributed the RMG export growth in August partly to a low base in the same month last year, when US reciprocal tariffs contributed to a 3% decline in exports to the US and a 10.43% fall in shipments to the European market. Compared with July 2026, August earnings actually fell by about $278 million, he pointed out.

However, he said the growth reflected the industry's resilience amid the ongoing gas crisis, high interest rates, and adverse global trade conditions. Recent government policy support had also helped protect the industry. For a sustainable export recovery, he stressed the need for:

• ⚡ Stronger energy security
• 💰 Lower interest rates
• 💰 Reducing cost of doing business
• 🏛 Improving ease of doing business

🌏 Export Markets Performance

The United States, Bangladesh's largest export destination, recorded 26.09% growth in imports from Bangladesh in August. Exports to the US rose 11.90% cumulatively in July-August.

The United Kingdom regained its position as Bangladesh's second-largest export market, followed by Germany, Spain, and the Netherlands. Among emerging markets:

• 🇹🇷 Türkiye: +141.03% (surge)
• 🇰🇷 South Korea: +42.37%
• 🇸🇦 Saudi Arabia: +42.09%

The EPB attributed the growth to stronger demand in major markets, increased buyer confidence in Bangladesh as a sourcing destination, and expanded production capacity. Higher exports of value-added products and efforts to diversify products and markets also contributed.

💰 Remittance Support

The export recovery is complemented by strong remittance inflows of $2.97 billion in August 2026, which together provide meaningful support to Bangladesh's external sector position:

• 💰 August exports: $4.43 billion
• 💰 August remittances: $2.97 billion
• 💰 Combined August external inflows: $7.40 billion

🌏 Strategic Context

The August export growth comes amid a challenging global trade environment:

• 📊 FY26 total exports: $48.38 billion (down 0.65% YoY)
• 📊 US tariff rate: 25.6% (slight edge over China/Vietnam)
• 📊 400+ RMG factories closed in past 3 years
• 📊 Gas crisis: 660 textile mills affected
• 📊 LDC graduation: November 2026, $17.5b exports at risk

🌏 Strategic Implications

• ✅ 13% export growth: positive signal for FY27 trajectory
• ✅ Non-RMG diversification: jute, pharma, leather showing strong growth
• ✅ Emerging markets: Türkiye, South Korea, Saudi Arabia surging
• ✅ US market recovery: +26% after last year's tariff-related decline
• ✅ Remittance support: $2.97b complementing export earnings
• ⚠️ Low base effect: August 2025 was depressed by US tariffs
• ⚠️ Gas crisis overhang: energy security needed for sustained recovery

The August export data represents an encouraging start to FY27 for Bangladesh's external sector — with broad-based growth across RMG and non-RMG sectors, strong performance in emerging markets, and complementary remittance inflows. If the growth momentum is sustained through the coming months, it would provide critical support to Bangladesh's external position through the LDC graduation transition beginning November 2026 — when preferential tariff access narrows and the country's export competitiveness will be tested in a more level playing field.