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In spite of a global economic slowdown, Bangladesh's apparel exports to Russia and China have bounced back to growth, which was earlier hindered by inflation caused by war.
According to the Export Promotion Bureau (EPB), apparel exports in July-December of the 2024 fiscal year rose by 29 percent in Russia and 44.50 percent in China. In non-traditional markets, exports grew by 12.28 percent, while Bangladesh experienced a decline of 1.24 percent in the EU and 5.69 percent in the USA. Unfortunately, RMG exports to India fell by 17.27 percent from $548.87 million to $454.10 million.
Data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) shows that exports to Russia in July-December 2023-2024 recorded $233 million, compared to $180 million in the same period last year. Similarly, exports to China aggregated $183.86 million, up from $127.24 million in the corresponding year.
The data indicates that exports to Russia in the fiscal year 2023 aggregated $426 million, and in the fiscal year 2022, exports to Russia were $583 million.
Simultaneously, exports to Russia-belt countries also increased during the mentioned period. Exports to Brazil increased by 23.57 percent, Chile by 20.34 percent, and New Zealand by 26.22 percent, according to BGMEA data.
“Exports to Russia and Russia-belt countries started increasing as the war situation improved,” Shahidullah Azim, Vice President of BGMEA, said in response to a query.
He added, “We don't think the political situation will impact trade with Russia, even in America. If the trade situation improves, apparel exports will also improve.”
He also mentioned, “Although we are yet to face payment disruptions, we have instructed our members to be slower in shipping consignments.”
Since Russia's invasion of Ukraine on February 24, 2022, the former has faced a raft of sanctions from the USA, Europe, Japan, the UK, and Australia.
Fazlee Shamim Ehsan, Vice President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said, “Currently, we are receiving payments through China and America. Therefore, we don't face any payment disruptions.”
EPB data shows that RMG fetched $23.39 billion and grew by 1.72 percent. Knitwear earned $13.48 billion, and woven earned $9.91 billion in July-December 2024 FY. In the same period last year, RMG exports stood at $22.99 billion, with knitwear earning $12.65 billion and woven $10.33 billion.
In FY19, exports to Russia were recorded at $489 million, $441 million in FY20, and $593 million in FY21 and $146.59 million in FY22.
Exports to Russia have been steadily increasing for the last several years, and exporters expect that shipments could reach $1 billion by the end of the current fiscal year.
Meanwhile, apparel exports to non-traditional markets stood at $4.53 billion, compared to $4.04 billion in the corresponding year.
Messenger/Fameema
