Photo: Messenger
Exports of apparel, the country's main export item, declined in major markets in July-November 2024FY, a period marked by increased pressure on the current government from the US and the UK due to upcoming elections amid prolonged global inflation.
According to the Export Promotion Bureau (EPB), garment exports to the USA declined by 5.76 percent to $3.27 billion, the EU by 0.18 percent to $9.05 billion, the UK by 14.61 percent to $2.25 billion, and Canada by 2.71 percent to $606 million. On the other hand, Bangladesh’s apparel exports grew by 14.12 percent to $3.64 billion in non-traditional markets during July-November 2024FY.
Bangladesh exported $18.83 billion during the mentioned period, marking a growth of 2.75 percent.
“Bangladesh is facing global economic pressure, while world trade is also experiencing the same situation. Political instability has not affected trade,” Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue (CPD), told The Daily Messenger.
Responding to a query, he said, “There is no political complexity in exports. The USA economy has yet to bounce back, as the country still suffers from unemployment and stagflation. Currently, there is about 4 to 5 percent inflation in the USA. Bangladesh-USA trade relations have not been affected yet. Once the USA economy normalises, Bangladesh’s garment exports will likely increase.”
Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Daily Messenger, “If stagflation persists, exports will decline further in the future.”
As the exports missed the target, it will be a challenge for the central bank, but the positive growth may help to mitigate the economic crisis,” he added.
He further suggested, “The central bank should strictly monitor whether the exporters are repatriating the income earned through their exports properly. To encourage exporters, the government should decide on a unified rate for the dollar.”
Meanwhile, to enter the high-end market, 25 blazer factories have been established in the country in recent years. Some of them have 190 lines that produce high-end woven products added to the export.
Usually, Bangladesh exports cotton-based products like T-shirts, sweaters, blouses, underwear, etc., and denim. Being the second-largest garments exporter globally after mighty China, Bangladesh is also the largest denim exporter to the USA and cotton to the EU.
Messenger/Sun Yath
