Germany has overtaken the US as the Bangladesh’s largest export market in five months of the current fiscal year because of a huge rise in export earnings from the EU country against a slowdown in the elections-gripped US market. Export earnings boost from major EU countries, including Germany, helped the country heal the bruises it suffered from the downward trend in the US and the Brexit-hit UK markets in the July-November period of the FY 2016-2017. Although the US remained the Bangladesh’s largest export destination until September this year, Germany from October started to overtake the North American country, buoyed by solid economic activities in Europe against stagnancy in demand in the US amid a bitter election campaign, said exporters and economists. Export earnings from Germany in the July-November period of FY17 stood at $2.31 billion against the earnings from the US — $ 2.29 billion — in the period. The US market faced a bump during the period as earnings fell by 6.68 per cent against that of the July-November period of FY16, whereas earnings from Germany grew by 23.29 per cent year-on-year in the July-November period of FY17. Exporters said that the main reason for Germany overtaking the US was a slowness of the North American market against a booming consumer demand in Europe, except in the Brexit-hit Britain. ‘Bangladesh’s export earnings from the US market were $2.46 billion in the July-November period of FY16, which is still higher than the $2.31 billion earned from Germany in the July-November period of this year. If the US market rebounds in the coming months, the North American country still can overtake Germany in next few months again,’ said an exporter. In FY16, the country’s total export earnings from the US was $6.22 billion against $4.92 billion from Germany. The major reason for export growth in Germany this year is the huge rise in shipment of readymade garments, the main export items of Bangladesh. Export of RMG products to Germany in the five months grew by 24.20 per cent to $2.16 billion from $1.73 billion in the same period of FY16. The apparel export to the US market in the July-November period of FY17 fell by 8.88 per cent to $2.05 billion from $2.25 billion in the same period of FY16. The US market slowed as both consumers and retailers were in an observation mood amid a bitter election campaign and mudslinging between Republicans and Democrats, said the exporters. Meanwhile, earnings from the United Kingdom, the third largest export destination for Bangladesh, experienced a 2.93-per cent negative growth in five months of the current fiscal year with earnings falling to $1.38 billion from $1.42 billion in the same period of FY16 as Brexit hit the value of pound. The earnings from other European countries like France, Spain and Netherlands in the July-November period, however, witnessed encouraging growth that helped Bangladesh to achieve 6.30 per cent growth in the period overcoming the fall in the US and UK markets. ‘Presidential election of the US was one of the reasons for the negative growth in the market but I am hopeful that the earnings will rebound in the market within three months,’ Abdus Salam Murshedy, president of the Exporters Association of Bangladesh, told New Age on Saturday. He said that it was true the export earnings growth in the US market in the current financial year was not remarkable but at the end of the year export target would be met as Bangladesh had rebuilt its shattered image successfully in last two years. Salam hoped that after the recognition of the global buyers’ platforms, Accord and Alliance, the readymade garment sector would achieve double-digit export growth in the coming financial year. According to the EPB data, export earnings from Canada in the five months of FY17 fell by 4 per cent to $394.92 million from $411.42 million in the same period of FY16. RMG products export to Canada, the 8th largest export market for Bangladesh, in the July-November period of FY17 decreased by 6.91 per cent to $352.31 million from $378.46 million in the same period of FY16. Export earnings from France in the five months of FY17 grew by 12.18 per cent to $754.04 million from $67213 million in the same period of FY16. Export to Spain in the July-November period of FY17 grew by 9.77 per cent to $800.93 million. In Asia, Bangladesh’s export earnings from Japan increased by 0.09 per cent to $420.53 million. Export to China grew by 36.27 per cent to $385.95 million from $283.21 million in the same period of FY16. Export earnings from India in the five months of FY17 grew by 4.16 per cent to $277.12 million from $266.04 million in the same period of FY16.
