The Ready-Made Garment (RMG) sector fetched 31.73 billion US dollar in the first 11 months of the current fiscal (July to May), up 12.82 per cent from the corresponding period of the last fiscal, when it was 28.12 billion dollar. According to the Export Promotion Bureau (EPB) data released in June, knitwear products earned 15.68 billion dollar, which is 12.50 per cent higher than the 13.94 billion dollar earned during the same period of FY2017-2018. Besides, Woven products earned $16.05 billion, up by 13.13 per cent from 14.18 billion dollar during the same period of the previous fiscal year. The specialized textile sector saw a 33.79 per cent growth to 137.74 million dollar from 103 million dollar, while home textile products saw a negative growth of 2.69 per cent to 800 million dollar, down from 825 million dollar. Meanwhile, agricultural products posted a sharp rise of 40.3 per cent growth to 854.46 million dollar in the first eleven months of FY2018-19 from 609 million dollar in the previous fiscal year. However, the earnings from leather and leather goods witnessed a 5.53 per cent negative growth to 944 million dollar during the period, down from 999 million dollar during the same period of FY2017-2018. Jute and jute goods also registered 20 per cent negative growth to 773.57 million dollar, which was 967 million dollar during the same period in the previous fiscal year. However, Bangladesh’s exports shipments earned by 14.78 per cent to 3.81 billion dollar in the eleventh month of the current fiscal year which was 3.32 billion dollar in the same period a year ago. Bangladesh has posted around 12.6 per cent growth with a quarter of 2018-19 fiscal year left on strong earnings from the readymade garments. The export earnings in the first nine months (July to March) of the financial year were around $31 billion, according to Export Promotion Bureau data released earlier this year. The figure exceeded the projection of 28.83 billion dollar by 7.2 per cent and the exports of the same period last fiscal year by 12.57 per cent, according to the bureau. The growth in exports has been helped by the earnings from the apparel sector as usual. Bangladesh exported garments worth around 26 billion dollar in the first three quarters of the fiscal year, marking a 13.65 per cent growth. Leather and jute exports, however, missed targets. Bangladesh exported leather goods worth over 771 million dollar in July-March period against 848 million dollar earnings in the same time last fiscal year. Exports of jute and jute products have dropped to 628 million dollar from last year’s 818 million by 23 per cent. Meanwhile, Bangladesh’s services exports have jumped to 6.35 billion in 2018-19 riding on 46 per cent growth. The amount has also beaten the target of 5 billion by 26.77 per cent. In 2017-18, Bangladesh earned 4.34 billion dollar from services exports. In June this year, export earnings from services sector were 920 million dollar, which is 91 per cent more than the earnings made in June last year. Earnings from goods exports grew by 10.55 per cent to 40.53 billion dollar, beating the target by 4 per cent last fiscal year. Finance Minister AHM Mustafa Kamal, in his budget speech on June 13, spoke of his satisfaction at the rise in services exports and hoped it would grow further. Commerce Minister Tipu Munshi had also said the government “strongly” believes Bangladesh will be able to achieve the target of exporting goods and services worth 60 billion dollar annually by 2021. In April, a World Bank report said, Bangladesh continues to be among the five fastest growing economies in the world, thanks to stable macro and export-oriented industry-led growth. But private sector investments remain insufficient along with declines in foreign direct investment. Growth outlook remains strong and stable, according to the report. The World Bank predicted 7.3 per cent economic growth for Bangladesh for the current fiscal year. “Sound macroeconomic policies – such as keeping the budget deficit below 5 per cent of GDP – and resilient domestic demand have led to growth in manufacturing and construction industries on the supply side,” the WB said. On the demand side, growth is led by private consumption and exports. After a modest performance last year, export earnings and remittances have bounced back helping the rural economy grow faster. In addition, the country has substantially improved its electricity generation and a bumper agricultural harvest has further stimulated growth, according to the report. Foreign direct investment remains low at less than 1 per cent of GDP. Net FDI inflow amounted to 910 million dollar in the first half of FY19, compared with 823 million dollar in the first half of FY18. The share of machinery in total imports for leading industries such as textiles, garments, pharmaceuticals, packing and leather has also declined, reaching 31.8 per cent in July-November 2018 from 55.6 per cent in 2009. “For Bangladesh to be an attractive destination for industries, it is critical to make resources such as land, electricity and gas available,” the WB said in the report. Businesses face regulatory uncertainty in Bangladesh on various fronts. “Regulatory predictability matters because it makes property rights insecure, thereby constraining investment. This leads to uncertainty for businesses – medium-size firms seem to bear the brunt more than large or small firms – and with inconsistencies in policy implementation, it can adversely affect employment growth,” the WB said.
