Photo : Messenger
The export of the country returned to the $5 billion mark after a year in December 2023, driven by the major export sector, readymade garments. In November 2022, Bangladesh joined the $5 billion export club, and in December of the same year, the country earned $5.36 billion from the global market.
Data indicates that the $5 billion export figure is expected by manufacturers, as the country had achieved this significant figure in the December 2023 at $5.30 billion.
However, export growth declined by 1.06 percent year on year in December. According to the Export Promotion Bureau (EPB), exports increased very insignificantly by 0.84 percent during July-December of the fiscal year 2024.
Meanwhile, the garment sector fetched $23.39 billion from the global market, growing by 1.72 percent in the first half (H1). Within this, knitwear contributed $13.48 billion, and woven garments contributed $9.91 billion.
Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Shahidullah Azim, told The Daily Messenger, “I think the EPB data doesn't match reality. The sector is suffering from work orders, as the EU and world markets are grappling with economic slowdown. So, how can exports reach such a high figure?”
Unfortunately, since the start of the Russia-Ukraine war in February 2022, exports have been affected. In some months during the year, export declined to below $3.5 billion as well.
EPB published export data on Tuesday, showing that in January 2023, exports recorded $4.85 billion, in February $4.29 billion, in March $4.76 billion, in April $4.73 billion, in June $4.90 billion, in July $3.98 billion, in August $4.78 billion, in September $4.31 billion, in October $3.76 billion, in November $4.78 billion, and in December, exports once again fetched $5.30 billion from the global market.
However, the export of primary commodities decreased by 2.36 percent, agro-products export increased by 2.28 percent, leather and leather goods exports declined by 17.93 percent, jute and jute goods exports declined by 10.24 percent, and home textile exports declined by 38.48 percent.
Sources revealed that trade leaders are feeling very discouraged, as the December target was missed by 5.57%. The target set for December was $5.62 billion.
“If we can uphold internal supply chains, increase investments in new products and markets, we will be able to sustain the desired growth," said BGMEA Director Mohiuddin Rubel in a statement.
He mentioned that predicting the trajectory for 2024 is challenging due to uncertainties in the international economic and geopolitical landscape.
In November 2023, Bangladesh became the top exporter of knitwear in the world.
Exporters believe that the industry will bounce back to growth from the next year, as China plans to halt the production of cheap clothing. China has already increased its investment in Vietnam in the high-end sector, making Vietnam a potential major competitor for Bangladesh in a few years.
According to the EPB data, garment exports to the USA declined by 5.76 percent to $3.27 billion, to the EU by 0.18 percent to $9.05 billion, to the UK by 14.61 percent to $2.25 billion, and to Canada by 2.71 percent to $606 million. In contrast, Bangladesh's apparel exports to non-traditional markets grew by 14.12 percent to $3.64 billion in July-November 2024FY.
Typically, Bangladesh exports cotton-based products such as T-shirts, sweaters, blouses, underwear, and denim.
Bangladesh is the second-largest garments exporter globally, after mighty China. Among these, Bangladesh is the largest denim exporter to the USA and cotton exporter to the EU.
Messenger/Disha
