Bangladesh’s apparel export to the European Union saw a 16.61% growth to $11.50 billion during the first half of the fiscal 2022-23 year-on-year, according to export statistics of the Export Promotion Bureau (EPB).
Apparel exports were $9.87 billion during the July-December period of the fiscal 2021-22.
EPB data mentioned that garment items exports to Germany grew 3.54% year-on-year, reaching $3.45 billion.
Exports to Spain and France grew by 17.62% and 33.08% to $1.70 billion and $1.41 million, respectively, during the last six months. Exports to Poland, however, saw an 18.43% decline.
Meanwhile, Bangladesh’s ready-made garments exports to the United States stood at $4.27 billion in July-December, with only a 1.11% YoY growth.
At the same time, exports to the United Kingdom and Canada reached $2.39 billion and $774.16 million, with 11.89% and 28.42% growth.
Apart from the traditional markets, the country’s apparel export to non-traditional markets grew by 32.19% to $4.04 billion from $3.05 billion in the corresponding period of the previous year. Among the non-traditional markets, exports to Japan reached $754.72 million, registering a 42.54% growth.
Bangladesh’s export to India also increased significantly by 50%, which is $548.89 million.
Talking with The Business Standard, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Director Abdullah Hil Rakib said, “There is a growth due to many delayed shipments being greenlit ahead of Christmas day, but now many buyers are deferring their shipments.”
If this scenario continues, it will hurt overall export, he added.
“2023 will be more uncertain for the apparel industry. Predictions may not work as every country is facing high inflationary pressure due to the ongoing war between Russia- Ukraine,” said Rakib, also the managing director of Team Group.
Highest growth in France, 18% decline for Polish market
Despite all negative indicators, he expressed optimism about getting some benefits on specific items as many entrepreneurs are investing in the capacity to produce man-made fiber-based garments items. He added, “Some value-added and new products export may compensate for a part of export loss from the regular and cotton based items.”
Bangladesh Garment Manufacturers and Exporters Association Director Md Mohiuddin Rubel said the statistics indicate a further possible decline in growth rate in the coming months amid global fear of economic recession aggravated by the Russia-Ukraine war.
