Bangladesh RMG Sector Faces Deepening Crisis

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) warned of a severe RMG crisis due to weak global demand and rising costs.

RMG exports fell 2.43% in FY26 (first 7 months); Oct–Dec 2025 exports dropped 9.43% YoY.

BGMEA stated that around 400 garment factories closed in the past year, with many more at risk, threatening employment and economic stability in Bangladesh.

Operational challenges in February–March due to elections, holidays, and Eid-ul-Fitr may cut effective working days to ~35 out of 60, even as wage costs rise.

BGMEA has requested faster cash assistance settlements and soft loans covering six months’ wages at low interest to help factories pay salaries and bonuses.