Bangladesh鈥檚 readymade garment exports to its major markets, including the United States and Germany declined in 10 months (July-April) of the current financial year 2023-24.
Exporters said that both unit prices and shipments of apparels dropped in several major markets, saying that the ongoing crises, including inflationary pressures in the western economies were the reason behind the fall.
The country鈥檚 readymade garment export to the US, the single largest destination for Bangladesh, in July-April of FY24 decreased by 1.90 per cent to $6.82 billion compared with that of $6.95 billion in the same period of FY23, according to Export Promotion Bureau data.
The government data showed that Bangladesh鈥檚 apparel export to Germany, the second largest export destination for the country, in the 10 months of FY24 declined by 9.40 per cent to $5.01 billion compared with that of $5.53 billion in the same period of FY23.
Bangladesh Garment Manufacturers and Exporters Association vice-president Abdullah Hil Rakib said that both the unit prices and shipments of apparels decreased in the US as the market was struggling to overcome the shock of high inflation.
He said that RMG exports to some of the western countries had declined in recent times and Bangladesh was working to overcome the challenges in the markets.
鈥極ur export is still volume driven and we are emphasising capacity building to make it value driven, Rakib said.
Bangladesh鈥檚 RMG export to the United Kingdom, the third largest export destination for the country, in July-April period of FY24, however, grew by 14.55 per cent to $4.80 billion compared with that of $4.19 billion in the same period of FY23, the EPB data showed.
Apparel export earnings from Italy in the 10 months of FY24 fell by 2.45 per cent to $1.80 billion compared with those of $1.85 billion in the same period of previous financial year.
The RMG export to Spain in July-April period of FY 24 increased by 6.07 per cent to $3.13 billion compared with that of $2.95 billion in the same period of FY23.
The data showed that Bangladesh鈥檚 apparel export to France in the 10 months of FY24 increased by 3.41 per cent to $2.49 billion compared with that of $2.40 billion in the same period of FY23.
Rakib observed that while exports to traditional markets were sluggish, Bangladesh had seen advancements in capturing market shares in new territories such as Japan, Australia, South Korea and Turkey.
The BGMEA vice-president highlighted efforts by Bangladeshi exporters to enhance capacity for increasing non-cotton item exports.
Rakib emphasised the vital role of the government policy support in facilitating capacity building and product diversification within the garment sector.
The EPB data showed that RMG exports to Japan in the 10 months of FY24 increased by 6.14 per cent to $1.40 billion while the shipments to Australia grew by 17.18 per cent to $1.12 billion in the period.
It also showed that apparel export earnings from South Korea in July-April of the FY24 increased by 14.73 per cent to $548.18 million while the earnings from Turkey in the period grew by 54.39 per cent to $337.47 million.
Bangladesh鈥檚 readymade garment export to India in the 10 months of FY24, however, declined by 22.44 per cent to $689.52 million compared with that of $889.06 million in the same period of FY23, the data showed.