Bangladesh: Apparel exports to US, Germany go down

Category: General

Country: Bangladesh

Region: Asia

Moinul Haque
Published: 21:51, May 13,2023

Bangladesh’s apparel exports to its major markets the United States and Germany have been declining for past three months as consumption of clothing decreased in the western countries due to high inflation.

The US was the largest export destination for Bangladeshi readymade garment while Germany was the second largest and the RMG exports to these markets in July-April of the current financial year 2022-23 declined by 7.13 per cent and 7.33 per cent respectively, according to Export Promotion Bureau data.

Bangladesh’s apparel exports to non-traditional markets, however, increased by 30.80 per cent in the first 10 months of FY23, data showed.

Country’s apparel exports to the US in July-April of FY23 declined by $533.78 million to $6.95 billion from that of $7.48 billion in the same period of FY22.

RMG exports to Germany in the first 10 months of FY23 fell by $437.85 million to $5.53 billion from $5.97 billion in the same period of FY22.

In July-April of FY23, Bangladesh’s apparel exports to the European Union increased by 8.58 per cent to $19.20 billion compared with that of $17.68 billion in the same period of FY22.

The global market size of apparel was shrinking due to the economic slowdown caused by the Russia-Ukraine war and it was obvious that Bangladesh’s exports to the western countries would decline, Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan told New Age.  

He said that banks of the western countries increased their interest rate to check inflation and it pushed the cost of living and the rate of installment of mortgage higher.

To cope up with high inflation, the western consumers decreased the consumption of apparel, Faruque said.

Bangladesh’s apparel exports to the United Kingdom, the third largest market for the country, increased by 10.88 per cent to $4.19 billion in the first 10 months of FY23 from $3.78 billion in the same period of FY22.

The BGMEA president, however, said that they had taken exclusive measures to increase exports to the non-traditional markets especially in India, Japan and South Korea.

Faruque said that there was a huge potential to grow the exports of Bangladeshi apparel on the Asian market and the BGMEA was working on it.

Bangladesh’s apparel exports to non-traditional markets, including Japan, Australia, India, South Korea, United Arab Emirates, China and Brazil, in the first 10 months of FY23 increased to $7 billion from 5.35 billion in the same period of FY22.

The apparel export to Japan in July-April of FY23 grew by 40.73 per cent to $1.32 billion compared with that of $939.18 million in the same period of FY22, the data showed.

RMG export to India in the first 10 months of FY23 increased by 50.33 per cent to $889.06 million compared with that of $591.41 million in the same period of FY22.

The apparel export to Australia in July-April of FY23 grew by 39.06 per cent to $961.30 million compared with that of $691.30 million in the same period of FY22.

Bangladesh’s apparel export to South Korea in the first 10 months of FY23 increased by 31.61 per cent to $477.81 million compared with that of $363.04 million in the same period of FY22.

The apparel export to Brazil in the first 10 months of FY23 rose by 71.92 per cent to $139.34 million compared with that of $81.04 million in the same period of FY22.

Courtesy: Newagebd.net