Photo: Collected
Garment, the main product of export that earns highest foreign currency, declined during the first five months of the year due to global economic slowdown and local energy crisis.
According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), apparel export was $4.97 billion in January, $4.49 billion in February, $4.34 billion in March, $3.29 billion in April and $3.35 billion in May. Even in May, export growth was down by 17.19 per cent year on year. In the fiscal year, apparel export grew very insignificantly by 2.86 per cent.
Muhammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told The Daily Messenger, “As the world economy is still suffering from economic crisis, work order has been dropped by 30 per cent. Export is declining drastically.”
Fazlee Shamim Ehsan, vice president of BKMEA, told The Daily Messenger export figures for May reflect the real scenario of export earnings. He said, “Usually, exports jump every month before Eid. But last month was exceptional, showing negative growth mainly due to low gas supply to industries.”
Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon said that the gas crisis has been a persistent problem for many months now. However, the crisis intensified recently after cyclone Remal battered the country.
The EPB data shows that during the July-May period of FY24, the ready-made garment (RMG) sector, the primary export contributor, recorded a 2.86 per cent year-on-year increase, reaching $43.85 billion in earnings. Home textile marked persisting negative growth of 24.29 per cent to $776.06 million, down from $1.02 billion in the mentioned period of last fiscal.
According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), during the 10 months of the 2023-24 fiscal year, Bangladesh exported $40.49 billion worth of garments, but the reserve of the central bank was down to $19.97 billion as of April. In last fiscal year, export was $46.99 billion.
The Bangladesh Bank data shows the gross reserve of January was $25.11 billion, February $25.96 billion, March $25.23 billion, and April $25.36 billion. But according to IMF calculation, reserve of the country stood at $19.96 billion in January, $20.78 billion in February, $19.91 billion in March, and $19.49 billion in April.
At the same period of last fiscal year, aggregated reserve was $32.22 billion in January, $32.26 billion in February, $31.14 billion in March, and $30.96 billion in April.
Moreover, due to prolonged heatwave, productivity has declined due to lower absence of the workers in factories, especially in those that do not have the chiller facility, said Fazle Ehsan Shamim, vice president of BKMEA. Shamim predicted export in May will be also lower.
Surprisingly, woven item export did not grow during the 10 months of FY2024. Woven item export was recorded at $17.61 billion, which was $17.60 billion in FY2023 and knit export was recorded at $22.87 billion, which was $20.96 billion in the same period of last year.
Messenger/Fameema
