Photo: Messenger
Contrary to gloomy predictions, Bangladesh's exports soared to an all-time high in January 2024, signalling a potential boost to the country's reserves. The Export Promotion Bureau (EPB) reported a remarkable growth of 11.45 percent, totaling $5.72 billion, primarily propelled by the ready-to-wear products segment. This achievement is particularly noteworthy against the backdrop of the global economic slowdown caused by inflationary pressures.
The garment industry played a pivotal role in this success, contributing $28.36 billion and registering a growth of 3.45 percent from July to January. Notably, knitwear accounted for $16.17 billion, and woven garments amounted to $12.18 billion.
Despite these positive figures, Shahidullah Azim, Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) expressed reservations.
Azim remarked to the Daily Messenger, "I think the data from EPB doesn’t match reality. The sector is suffering from a lack of work orders due to the economic slowdown in the EU and the world market. So, how can exports achieve such significant figures?"
The Russia-Ukraine war, which commenced in February 2022, adversely impacted exports, leading to some months experiencing a decline below $4 billion.
Over the seven months from July to January, total exports amounted to $33.26 billion, slightly below the set target of $35.87 billion. Varied performances were observed across different sectors, with agro-products growing by 4.44 percent while leather and leather goods declined by 3.37 percent. Live fish exports surged by an impressive 103 percent and tea by 55.15 percent, while vegetables were up by 98 percent, spices by 46.47 percent, and manufactured goods by 2.64 percent. Plastic products recorded a growth of 15.48 percent, manmade filament fibre by 27.76 percent, and footwear by 2.57 percent, whereas jute and jute goods, along with home textiles, experienced declines of 6.85 percent and 34.37 percent, respectively.
Reflecting on previous months, EPB data indicated export figures of $4.85 billion in January 2023, $4.29 billion in February, $4.76 billion in March, $4.73 billion in April, $4.90 billion in June, $3.98 billion in July, $4.78 billion in August, $4.31 billion in September, $3.76 billion in October, $4.78 billion in November, and $5.30 billion in December.
Despite reaching a commendable $5.72 billion in exports in January, trade leaders are disheartened, as the set target of $5.76 billion was missed by 0.69 percent.
BGMEA Director Mohiuddin Rubel, however, sees a positive side, stating, "It is a good sign that we have reached $5.72 billion. If we can maintain internal supply chains and invest in new products and markets, sustained growth is possible."
Rubel acknowledges the challenges of predicting the trajectory for 2024 due to uncertainties in the international economic and geopolitical landscape. In November 2023, Bangladesh achieved the top position in global knitwear exports.
Looking ahead, exporters anticipate industry growth in 2024, speculating that China's shift away from producing cheap clothing will create opportunities. With China increasing investments in Vietnam's high-end sector, Vietnam is seen as a potential major competitor for Bangladesh in the coming years.
The Export Promotion Bureau (EPB) reports a decline in garment exports to traditional markets. In July-December 2024 FY, garment exports to the USA decreased 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. However, non-traditional markets saw growth, with Bangladesh's apparel increasing by 14.12 percent to $3.64 billion.
Similarly, in July–December 2024 FY, the EPB notes a decline in garment exports to traditional markets, including the USA (5.69% to $4.27 billion), the EU (1.24% to $11.50 billion), the UK (13.24% to $2.71 billion), and Canada (4.16% to $774.6 million). On the flip side, non-traditional markets witnessed growth, with Bangladesh's apparel increasing by 12.28 percent to $4.53 billion.
Bangladesh predominantly exports cotton-based products such as T-shirts, sweaters, blouses, underwear, and denim. As the world's second-largest garment exporter after China, Bangladesh holds the title of the largest denim exporter to the USA and a major cotton exporter to the EU.
Messenger/Disha
