Export earnings from China suffered a drastic fall of 21.96 per cent in the first quarter of the current fiscal year after years of impressive growth due to devaluation of the yuan amid economic woes in the world second largest economy. According to the Export Promotion Bureau data released on Tuesday, Bangladesh’s export earnings dropped to $155.85 million in the July-September period of the FY 2015-2016 from that of $199.71 million in the same period of the last fiscal year. Experts and exporters said that the negative export growth to the market, which is considered one of the fast-growing markets for Bangladesh, was a reflection of fall in demand for imported products in the country due to the recent economic slowdown and devaluation of its currency, yuan. They said that imports in China became costlier due to the yuan devaluation, forcing Chinese importers to cancel export orders from Bangladesh. Export earnings from major products including apparel items, jute and jute goods, and leather and leather products also decreased significantly in the months compared with that of the same period of FY15, the data showed. According to the data, earnings from export of readymade garment items fell to $58 million in July-September this fiscal year from $74 million in the same period of the last fiscal year. Bangladesh’s export to China has been increasing impressively over the last few years. Export earnings from China were $157.89 million in the first quarter of the FY14. In July-September of FY13, Bangladesh exported products worth $107 million in China. Centre for Policy Dialogue additional research director Khondaker Golam Moazzem told New Age on Wednesday that export earnings from the market decreased due mainly to slowdown in Chinese economy and devaluation of its currency. Chinese consumers increased consumption of domestic products as imported ones became costlier due to the yuan devaluation which affected Bangladesh exports to the market as the product line of the both countries, particularly in the RMG sector, are same, he said. Policy Research Institute executive director Ahsan H Mansur said that fall in unit price of exported products was also an important reason along with slower economic growth and devaluation of yuan for negative export growth in China. Bangladesh Garment Manufacturers and Exporters Association senior vice-president Faruque Hassan said that export orders of Bangladesh apparel items from Chinese importers significantly declined in recent times as import became costlier for them. He stressed the need for slight devaluation of Bangladeshi taka to keep intact the competitiveness of local exporters in the international markets. China is one of the most important and emerging markets for the Bangladeshi RMG exporters and an aggressive marketing is desired for the market, he added.
