Bangladesh’s export sector is under pressure as earnings turned negative in the first half of FY26 and again in December 2025.
Official data from Export Promotion Bureau shows total export earnings during July to December FY26 fell by 2.19% year on year to $23.99 billion.
The stress deepened in December. Exports dropped 14.25% to $3.89 billion from $4.62 billion a year earlier.
But when it comes to the Leather and leather products exports it stood out as a rare positive. Overall exports from the sector rose 5.61% to $610 million.
Leather goods led the gain with exports jumping 19.50% to $194 million.
Leather footwear exports inched up to $355 million while raw hide exports slipped 1.87%.
Non leather footwear moved the other way. Exports declined 3.84% to $263 million during the period.
On the market side Bangladesh still posted growth in key destinations in December 2025. The United States, Germany and the United Kingdom remained the top three markets.
Exports to the US grew 7.14%. Shipments to Germany rose 18.08% and the UK saw a 14.50% increase. Strong growth was also seen in the UAE at 25.39% Australia at 21.33% and Canada at 9.13%.
Economists caution that these gains hide deeper risks. Growth in some markets is being offset by lower volumes and weaker prices elsewhere.
Exporters point to slowing global demand, US counter tariffs, tougher competition from China, higher production costs and wider geopolitical and trade uncertainty as key reasons behind the decline.
